Thomas Daniels
Law enforcement authorities in India have detained four individuals suspected of running a fraudulent cryptocurrency trading platform that defrauded investors of more than $90,000. According to local reports, the suspects lured victims by posing as representatives of a fictitious entity named GBE Crypto Trading Company. The name was seemingly designed to suggest a connection with GBE Brokers, a legitimate Cyprus-based online brokerage firm, which is prominently listed in search results for “GBE crypto trading company.”
The scheme was primarily executed through social media platforms, including WhatsApp and Telegram, where the fraudsters distributed a counterfeit trading application. To evade detection, the perpetrators utilized virtual phone numbers and VPN services. Investigations conducted by the Cyber Police Station in Balangir, Odisha, revealed that the scammers had registered multiple domains to mimic authentic trading platforms, although it remains unconfirmed if they specifically impersonated GBE Brokers.
Through these deceptive methods, the fraudsters accumulated approximately INR 7.6 million (around $90,604). Rishikesh Khilari, Superintendent of Police in Balangir, disclosed that over 60 bank accounts connected to the fraudulent operation have been frozen, with total assets amounting to INR 8.5 million (approximately $101,334) seized as of the latest reports.
This incident is not an isolated case. In January 2024, Balangir cyber police also dismantled another crypto scam involving a fictitious cryptocurrency named Dykan coin. Similar to the GBE Crypto Trading Company, the fraudsters created a fake crypto exchange, DYFINEX, and offered trading and staking services to attract unsuspecting investors.
India remains a hotspot for cryptocurrency scams, driven by weak regulatory frameworks and limited public awareness of digital currencies. Scammers frequently exploit these vulnerabilities by promoting counterfeit cryptocurrencies, fraudulent trading platforms, and dubious investment schemes targeting retail investors.
Notably, one of the largest crypto scams of 2024 was the crackdown on the E-nugget scheme, a fraudulent investment operation that amassed approximately $10.7 million in cryptocurrencies. Another Ponzi scheme, exposed in August, resulted in losses exceeding $890,000, operating under the guise of a fake cryptocurrency named Emollient Coin.
Regulatory authorities in India are reportedly drafting a discussion paper, expected to be released later this year, which will serve as a basis for potential legislation governing the cryptocurrency sector.
