Back to the list

Indian Citizen Loses Over $104,000 to Scammers Through Investment In a Fake Crypto Exchange

thecryptobasic.com 26 April 2022 10:56, UTC
Reading time: ~2 m

A Hyderabad man suffered significant losses after investing in a fake cryptocurrency exchange.

An Indian man based in the city of Hyderabad has been defrauded to the tune of Rs 80 lakh ($104,437) in a failed cryptocurrency investment.

Victim Narrates His Ordeal

According to a complaint filed today by the victim referred to as Mahesh, he had invested $104,437 in a cryptocurrency exchange between December 2021 and April 2022.

Mahesh told authorities that he learned about the exchange last year through a friend and began investing in the platform.

He disclosed that his first investment was Rs 30,000 ($391), which earned him an ROI of Rs 1 lakh in a short while.

Excited by the lucrative return he received within a short time, the victim committed more funds to the investments, which further increased his profit.

However, Mahesh added that he found out he had been the victim of a scam after he had issues withdrawing his funds.

“He was unable to withdraw the money from his wallet and when he contacted the fraudsters, they asked him to pay Rs 35 lakh to unlock the wallet. He refused to pay and subsequently the URL became defunct. Realizing he was duped, Mahesh lodged a complaint with us,” ACP KVM Prasad told Times of India today.

Mahesh did not disclose the specific cryptocurrency he had invested in; however, he noted that he made the investment via a cryptocurrency exchange whose URL ended with an extension ‘.ac.sh’.

The report added that following his reports to authorities, a case has been established against the fraudsters under sections 66-C and 66-D of the Information Technology Act.

Rising Cases of Crypto Theft

With cryptocurrencies becoming more valuable, malefactors are on a rampage looking for ways to increase their holdings in the asset class as they have deployed numerous means to achieve this purpose.

In recent times, there have been many cases of rug pull scams and heists resulting in the loss of hundreds of millions of dollars.

Scammers are also developing phishing sites to steal recovery phrases and gain access to victims’ funds.

As usual, investors are urged to always conduct due diligence before investing in any platform, as doing so will save them from a lot of disappointment.

Back to the list