Bhumika Baghel
24-12-2025
India’s digital ecosystem is once again under scrutiny as enforcement agencies exposed a major financial fraud linked to fake cryptocurrency investment platforms, underscoring rising crypto scams in India.
The Directorate of Enforcement (ED), Bengaluru Zonal Office, conducted extensive search operations on 18 December 2025 under the Prevention of Money-Laundering Act (PMLA), 2002, targeting M/s 4th Bloc Consultants and its associates.
Source: Press Release
The searches covered 21 residential and office premises across Karnataka, Maharashtra, and Delhi, following information shared by the Karnataka State Police. Authorities allege the accused operated large-scale cryptocurrency fraud schemes, targeting both foreign nationals and Indian citizens, by collecting funds disguised as high-return investments.
With thousands of investors, from first-time crypto investors to seasoned traders, affected across India and abroad, are crypto scams in India entering a more dangerous and sophisticated phase?
Investigators uncovered a well-planned and long-running method of operation used since 2015, highlighting how crypto scams in India have evolved beyond basic scams.
Key findings include:
Creation of fake cryptocurrency investment platforms that closely looks like legitimate crypto-websites
Source: Official Data
Promises of high and guaranteed returns to attract investors, where initial payouts had been made to early investors to build trust.
Unauthorized use of photos of reputed market experts and public figures for promotions
Aggressive marketing through Facebook, Instagram, WhatsApp, Telegram, and referral bonuses
Laundering of funds via hawala channels (illegal money transfer system operates outside the banking network), accommodation entries, and P2P crypto-transfers
How Did They Manage The Stolen Capital?
The search operations uncovered several digital wallet addresses linked to the accused persons. They moved the stolen money across multiple crypto wallets to hide its trail. These funds were later converted, transferred overseas, and used to buy properties and other assets, allowing the group to manage and conceal the capital without immediate detection.
Estimated cryptocurrency crime cases in 2025 show clear regional concentration across the country. Where the high investor interest, rapid technology adoption, and limited knowledge, become the reason for surging cases in the major states.
Maharashtra: 650 cases
Karnataka: 550 cases
Delhi: 450 cases
Telangana: 300 cases
Uttar Pradesh: 250 cases
Here, Maharashtra and Karnataka lead due to high virtual asset use in cities like Mumbai and Bengaluru, while Delhi and Telangana see rising cases from high internet access and low awareness. Uttar Pradesh and Gujarat are emerging targets as scams reach rural areas as technology and smart networks.
This highlights how the regulatory gaps and social media reach rapidly expanding the cryptocurrency fraud networks, leaving no one, urban–rural.
India currently does not recognise cryptocurrencies as legal tender. While digital asset trading soars here, it operates under regulatory uncertainty. But, as the Indian crypto market is growing fast, currently ranked #1 Globally in digital product's trading, authorities are taking steps to regulate it.
Cryptocurrencies are treated as Virtual Digital Assets (VDAs), with taxes and KYC rules to protect investors. Proposed legislation such as the “Cryptocurrency and Regulation of Official Digital Currency Bill” and “Coins Act 2025”, are also adding hopes.
In developments, Madras High Court recognising cryptocurrencies as property and the RBI’s continued expansion of the Digital Rupee (e₹), showing growth. Although the country is moving slowly, it aims to create a safer, regulated environment.
So, with this the expectations of a clear future for digital product’s trading in the crypto-leading country becomes strong and pave the way for a more secured region.
Bhumika Baghel is a rising crypto content writer with a deepening interest in blockchain technology and digital finance. With a keen understanding of market trends and cryptocurrency ecosystems, she breaks down intricate subjects like Bitcoin, altcoins, DeFi, and NFTs into accessible and engaging content. Bhumika blends well-researched insights with a clear, concise writing style that resonates with both newcomers and experienced crypto enthusiasts. Committed to tracking price fluctuations, new project developments, and regulatory shifts, she ensures her readers stay informed in the fast-moving world of crypto. Bhumika is a strong advocate of blockchain’s potential to drive innovation and promote financial inclusion on a global scale.
Bhumika Baghel is a rising crypto content writer with a deepening interest in blockchain technology and digital finance. With a keen understanding of market trends and cryptocurrency ecosystems, she breaks down intricate subjects like Bitcoin, altcoins, DeFi, and NFTs into accessible and engaging content. Bhumika blends well-researched insights with a clear, concise writing style that resonates with both newcomers and experienced crypto enthusiasts. Committed to tracking price fluctuations, new project developments, and regulatory shifts, she ensures her readers stay informed in the fast-moving world of crypto. Bhumika is a strong advocate of blockchain’s potential to drive innovation and promote financial inclusion on a global scale.
1 month ago
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1 month ago
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