News 
March 27, 2025 
4 min. 
In a shocking turn of events, Indian authorities have apprehended five individuals, including a woman, for their alleged involvement in a $700,000 cryptocurrency fraud. According to reports, the suspects deceived a businessman through a crypto trading platform linked to a scam originating in Japan.
This latest crackdown demonstrates the Indian government’s increasing vigilance against cryptocurrency-related fraud. It also reinforces the authorities’ determination to curb illicit activities and protect investors from financial deception.
Indian Authorities Arrest Five in $700K Crypto Fraud
Indian law enforcement has detained five individuals accused of orchestrating a $700,000 cryptocurrency scam. According to local sources, the suspects allegedly disguised as representatives of a well-known Japanese crypto exchange to defraud a businessman. The arrests followed a thorough investigation by the cybercrime unit of Odisha’s Crime Branch.
The elaborate scheme revolved around a fraudulent trading app named ZAIF, which lured investors with promises of up to 200% returns on crypto investments. Notably, the real ZAIF is a legitimate Japanese exchange that suffered a $60 million hack in 2022. However, authorities believe the exchange itself had no involvement in this scam.
Indian Crypto Fraud: Businessman Duped in Sophisticated Scam
A complex cryptocurrency scam in India unfolded when a woman, impersonating a Hong Kong-based IBM software developer, approached a businessman on Facebook. Gaining his trust, she convinced him to transfer over INR 6 crore (approximately $699,352) to multiple accounts controlled by the fraudsters within a month.
To further deceive the victim, the scammers used a fake trading app that displayed impressive profits in his account. However, when he attempted to withdraw his funds, they demanded an additional INR 89 lakh to unlock them. Upon his refusal to pay, the fraudsters vanished without a trace.
Despite their efforts to disappear, police tracked down the suspects using digital evidence and banking records. A subsequent raid led to the recovery of crucial materials, including mobile phones, SIM cards, ID documents, and other incriminating evidence.
Meanwhile, crypto exchange Deribit recently warned about the rise in cryptocurrency-related job scams. Fraudsters impersonate major crypto firms to deceive developers and job seekers, adding to the growing wave of digital fraud.
Eight Arrested in $244K Crypto and Forex Trading Scam
In a parallel case to the recent $700K crypto fraud, another major scam has surfaced, leading to an estimated loss of INR 21 crore (approximately $244,300). On Wednesday, Srinagar police apprehended eight individuals suspected of orchestrating the fraudulent scheme.
Authorities revealed that the suspects operated a fake cryptocurrency and forex trading platform, betraying over 5,000 investors. Victims were lured with false promises of astonishingly high returns, with a minimum investment requirement of $300 per participant. The scammers managed to amass a total of 21 crores before being caught by law enforcement agencies.
This development emerges amid renewed criticism of cryptocurrency, with economist Peter Schiff reigniting controversy by labeling crypto as a scam. He also recently accused Donald Trump of misleading Americans with his Bitcoin holdings, warning investors about potential risks.
