Indian Police Investigate INR 10M Crypto Scam Tied to Hong Kong

Indian police have launched an investigation into a cryptocurrency scam involving the “Datameer” trading app, which allegedly swindled over INR 10 million ($119,000) from more than 700 local investors. The scheme, which surfaced in April 2024, promised returns of up to 50% on crypto investments, attracting a mix of small and large investors.

Victims were lured through social media campaigns that promoted rapid gains, according to Superintendent of Police Pankaj Kumar Rasgania, head of the Cyber Wing. Once funds were transferred via the fraudulent app, it abruptly shut down, and the operators vanished, leaving investors in the dark.

Despite India’s restrictive regulatory framework and heavy taxes on cryptocurrencies, the country continues to see rising demand for digital assets. India topped Chainalysis’ 2024 Global Crypto Adoption Index, but this surge has also exposed vulnerabilities, with scams capitalizing on the growing interest.

Authorities suspect the perpetrators are scattered across India and have uncovered potential links to Hong Kong, complicating efforts to trace the stolen funds. Investigators are collaborating with cybercrime experts from various police forces nationwide, and further details are expected as the case develops.

This scam adds to a growing list of crypto frauds with international ties. In March 2024, India’s Enforcement Directorate (ED) charged 299 entities, including individuals of Chinese descent, under anti-money laundering laws for a similar crypto-related scam involving the “HPZ Token” app. Other cases, like the $35,000 crypto fraud involving a doctor, revealed how stolen funds were laundered through a network of bank accounts and digital wallets across China and Taiwan.

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