Mumbai Man Loses ₹1.93 Crore in Online Crypto Investment Scam

A 62-year-old retired professor from a reputed Mumbai college was recently duped in a cryptocurrency scam, losing ₹1.93 crore. The victim was allegedly targeted through a fake online relationship on Facebook by a woman named Ayesha, who convinced him to invest in a fraudulent crypto scheme. Authorities have since registered an FIR against the cybercriminals involved in the case.

Tragic Story of a Crypto Scam Victim Losing ₹1.93 crore

According to reports, a crypto scammer, Ayesha, befriended a retired professor online on a social media platform and shared daily conversations with him to gain his trust. She informed the victim about cryptocurrency and suggested he invest in it. Later, Ayesha opened a Binance account with his credentials and asked him to deposit money in it, before stealing the funds and cutting off contact.

However, the tragedy did not end there, as another scammer named Koyal approached him, promising to recover the lost funds. But after making several payments under different circumstances and no returns, the professor finally realized that he had been defrauded.

Legal Action Against Cybercrimes

The Cyber West Division has registered a case against unknown cybercriminals under different Sections of the Information and Technology Act. To report these kinds of cybercrimes, the National Cybercrime Reporting Portal has been made accessible by the Reserve Bank of India. Under federal law in India, crypto hacking and fraud could result in 3 to 10 years of imprisonment and hefty fines.

India’s Lack of Specific Crypto Laws

In June, the Indian government planned to release a discussion paper to establish a regulatory framework for cryptocurrency. However, the laws were never enacted, and the country still lacks specific crypto laws to address offenses related to digital assets. Despite having over 100 million crypto users in India and years of regulatory limbo, India remains in a grey area in cryptocurrency.

Final Thought

In recent months, India established tax policies, reporting requirements, and anti-money laundering (AML) regulations, but laws against crypto scams are still missing in the regulatory framework. Industry investors are expecting that the government will soon release the discussion paper, addressing the offenses among other necessary crypto regulations.