Law enforcement in India launched an investigation into a crypto investment scam that duped locals out of millions after promising fixed monthly returns of 10%.
A Nov. 4 report from the Deccan Chronicle cited police officials who are investigating a cryptocurrency scam that targeted 320 people across the state of Andhra Pradesh.
Allegedly masterminded by just one individual identified as Ramanjaneyulu, the scheme has reportedly led to losses amounting to at least inr 23 crores (roughly $2.73 million), with some estimates suggesting the total sum could be higher.
Ramanjaneyulu attracted investors by assuring fixed monthly returns of 10% for every one-lakh-rupee investment made under the scheme. To lend credibility to the scam, he advertised the use of prominent exchanges like Binance and OKX.
The scam, which has been operational since 2021, defrauded a wide range of individuals, including local businessmen, politicians, government employees, traders, and other officials. Some victims reportedly took out loans to invest in the scheme, only to suffer heavy losses.
Local police are currently investigating the case after several complaints were filed over the past month.
India remains a goldmine for scammers fueled by the grassroots-level adoption of cryptocurrencies amongst residents. The world’s most populous nation currently leads in Chainalysis‘ global crypto adoption index.
However, this widespread adoption has also attracted scammers. Between October 2023 and March 2024, Indian citizens reportedly lost approximately INR 500 crores (about $60 million) to crypto-related scams.
Last month, Indian authorities launched an investigation into a crypto trading app, alleged to be an investment scam, promising returns of up to 50%. At least 700 victims lost over $119,000 after the fake trading platform shut down without notice. The operators of the scheme reportedly had connections to Hong Kong.
In August, another fake crypto trading platform enabling investment scams bit the dust after police arrested four of the platform’s operators.