In a recent development, police in Andhra Pradesh, India, have commenced investigations into a cryptocurrency scam that allegedly cheated 320 individuals out of their hard-earned money. The scam, orchestrated by an individual identified as Ramanjaneyulu, has reportedly led to losses amounting to at least INR 23 crores (approximately $2.73 million), with some speculations hinting at a higher total sum.
The scammer lured investors with the enticing promise of a fixed 10% monthly return on every one-lakh-rupee investment made under the scheme. To add an air of authenticity, the scammer claimed to use well-known cryptocurrency exchanges like Binance and OKX.
The scheme, which has been active since 2021, duped a broad spectrum of individuals, including local businessmen, politicians, government employees, traders, and other officials. Alarmingly, some victims reportedly went as far as taking loans to invest in the fraudulent scheme, leading to devastating financial losses.
India’s enthusiastic adoption of cryptocurrencies, while positioning it at the forefront of Chainalysis’ global crypto adoption index, has also made it a hotbed for similar scams. Between October 2023 and March 2024, Indian citizens reportedly lost a staggering INR 500 crores (approximately $60 million) to such crypto-related scams.
Last month, Indian authorities launched another investigation into a fake cryptocurrency trading app that promised returns of up to 50%. Once the fraudulent platform abruptly shut down, it left at least 700 investors bereft of over $119,000. The operators behind this scheme reportedly had links to Hong Kong.
In another incident in August, a counterfeit cryptocurrency trading platform was dismantled after authorities arrested four of its operators.
The recent spate of cryptocurrency scams underscores the urgent need for stringent regulations in the rapidly growing crypto market. The increasing number of duped investors serves as a grim reminder of the potential pitfalls of unregulated cryptocurrency trading.
As law enforcement agencies grapple with these sophisticated scams, potential investors are urged to exercise caution and perform extensive due diligence before investing in cryptocurrency schemes. The allure of quick, high returns should not overshadow the need for prudent investment practices, especially in the volatile and relatively unregulated realm of cryptocurrencies.
The ongoing investigation into Ramanjaneyulu’s scheme is a testament to the authorities’ commitment to bring these fraudsters to justice. However, it also serves as a stark warning about the potential risks associated with cryptocurrency investments. As the crypto market continues to evolve, one can hope for more robust regulatory frameworks that can safeguard investors while fostering healthy market growth.
