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lIndia’s Odisha State Police Bust $1.5 Million Crypto Scam Ring

The police in the Indian state of Odisha have busted a group involved in fake cryptocurrency transactions, uncovering a scam worth over $1.5 million.

This operation comes amid a broader effort by the Indian government to enhance scrutiny and regulation in the cryptocurrency sector, reflecting growing concerns over the rise in crypto-related scams in the country.

Local media reports detail how this recent bust in Odisha highlights the challenges and risks associated with the burgeoning digital currency market in India.

Odisha Police Uncover Sophisticated Crypto Scam

In Bolangir, a city in Odisha, India, the police recently unraveled a complex cryptocurrency scam. The breakthrough came on Saturday with the apprehension of the main suspect leading a local gang involved in fraudulent cryptocurrency transactions.


This group cleverly lured people with promises of exotic tours to Thailand and Dubai, leveraging various websites and apps to execute their scams. They conducted fake cryptocurrency transactions, deceiving investors and amassing over $1.5 million.

To further obscure their illicit activities, the gang set up a multi-level marketing company named “Pegmatite Sustainable Solutions Private Limited”. Their strategy included introducing a new digital currency in July 2022, initially valued at $0.0012.

They later falsely claimed the value had increased to $0.010 to attract more investors, manipulating their trust and capitalizing on the allure of quick profits in the volatile crypto market.

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Rising Tide of Crypto Scams Targeting Indian Investors

The apprehended members of the crypto scam gang in Odisha were found to be falsely inflating the value of their digital currency to entice investors. In addition to arresting the suspects, the police seized various important documents and a luxury vehicle from the possession of the accused.

This case in Odisha is symptomatic of a larger trend in India, where cryptocurrency scams are increasingly prevalent. Surveys and reports from local media indicate that Indian investors, especially novices, are frequently falling prey to such scams. Many of these fraudulent activities are found to be orchestrated through the Telegram messaging app.

The susceptibility of Indian investors to these scams is heightened by several factors, including the lack of stringent regulatory frameworks, the inexperience of new investors, and limited understanding of digital platforms. This environment creates a fertile ground for online scammers, who exploit the trust and naivety of the Indian populace.

One notable incident involved a Delhi-based engineer who lost $15,000 in a crypto scam on Telegram. Such cases underscore the urgent need for increased awareness and stronger regulatory measures to protect investors in the rapidly evolving and often opaque world of digital currencies.

Indian Government Tightens Regulations to Combat Crypto Scams

In response to the escalating number of cryptocurrency scams in India, the government has begun implementing stricter regulations aimed at curbing these fraudulent activities. This move signifies a more proactive approach in overseeing the burgeoning digital currency market.

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A significant step in this direction was taken by the Financial Intelligence Unit (FIU) of India. The FIU issued show-cause notices to nine offshore cryptocurrency exchanges, accusing them of operating illegally within the country and breaching India’s stringent anti-money laundering regulations.

This action reflects the government’s commitment to ensuring compliance with existing financial laws and preventing the misuse of digital assets for illicit purposes.

Moreover, the Indian government has expanded its regulatory framework to include digital assets under its surveillance. This inclusion means that the provisions pertaining to money laundering now also apply to the country’s cryptocurrency markets.

This enhanced oversight is expected to bring greater transparency and security to the sector, protecting investors and maintaining the integrity of India’s financial system. Such measures are crucial in a landscape where the advent of digital currencies presents both new opportunities and potential risks.

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Donald Haymatter

Donald Haymatter is an expert broker with 15+ years of experience. He stays up-to-date with the latest financial news and trends to help clients make informed investment decisions. Donald is known for his analytical approach and personalized investment advice. Outside of work, he enjoys reading and mentoring young professionals.

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