ED Uncovers Pan-India Crypto Fraud Network Using 26 Fake Websites
India's Enforcement Directorate has exposed a sprawling cryptocurrency fraud operation involving 26 counterfeit investment portals. The scheme preyed on both domestic and international investors through sophisticated deception tactics, including fabricated celebrity endorsements and manipulated social media campaigns.
The fraudulent network employed cloned websites mimicking legitimate crypto platforms, luring victims with promises of unrealistic returns. Initial payouts to early participants created a false veneer of credibility—a hallmark of Ponzi schemes. Facebook and Telegram served as primary recruitment channels.
Investigators traced fund flows through complex layers: anonymous crypto wallets, offshore shell companies, and traditional hawala networks. Proceeds were allegedly laundered into real estate holdings across multiple jurisdictions.
This case emerges as Indian regulators tighten oversight of digital assets, with the Reserve Bank of India recently mandating stricter KYC protocols for VIRTUAL currency transactions. The crackdown reflects growing concerns about crypto's misuse in emerging markets.
