Indian Authorities Crack Down on Cryptocurrency Scam Targeting Foreigner
India’s Enforcement Directorate (ED) has successfully busted a cryptocurrency fraud ring that specifically targeted a foreign national. The individual responsible for the scam managed to convince the victim to transfer a substantial amount of $400,000 to a cryptocurrency account, claiming that her bank account was at risk. However, the account was set up using unauthorized remote access without the victim’s knowledge. The ED has taken strict action against the fraudsters, seizing digital evidence, freezing fixed deposits, and confiscating jewelry that was linked to the case. The investigation is still ongoing as authorities work to uncover all the details surrounding this fraudulent operation.
ED’s operation has exposed a widespread network involved in cryptocurrency fraud. The search operations conducted on June 6 targeted various locations in Delhi, Haryana, and Kanpur (Uttar Pradesh), focusing on Prafful Gupta and his associates. The investigation was initiated based on a First Information Report (FIR) filed by India’s Central Bureau of Investigation (CBI), naming several individuals, including Prafful Gupta, Sarita Gupta, Kunal Almadi, Gaurav Pahwa, Rishabh Dixit, and others.
The accused managed to convince the victim to transfer the funds by exploiting her concerns about the security of her bank account. They gained unauthorized access to her computer and created a cryptocurrency account in her name. The funds were then converted into cryptocurrency and distributed among various accomplices. The ED’s findings indicate that the transferred cryptocurrency eventually ended up in the hands of Prafful Gupta, his mother Sarita Gupta, and was then sold. The proceeds were funneled to fake entities within India and further dispersed to thousands of accounts with falsified Know-Your-Customer (KYC) details. A portion of the funds was also moved to a Gurgaon-based fintech company, which helped in layering the proceeds by bypassing proper KYC checks.
In their pursuit of justice, the ED managed to seize key evidence during the search operations, including digital evidence and jewelry worth Rs. 35 lakh ($42,000). Furthermore, they froze fixed deposits amounting to Rs. 7.25 crore ($880,000). The investigation is still ongoing as authorities continue to unravel the intricacies of this case.
This incident serves as a reminder for individuals to exercise caution when dealing with cryptocurrency and to remain vigilant against potential scams. Authorities are working tirelessly to dismantle fraudulent operations and bring those responsible to justice.