Indian police are currently investigating a cryptocurrency investment scam that has defrauded locals out of millions of dollars by promising fixed monthly returns of 10%. The scam, masterminded by an individual named Ramanjaneyulu, targeted 320 people across the state of Andhra Pradesh, leading to losses amounting to at least INR 23 crores (approximately $2.73 million).
Ramanjaneyulu attracted investors by guaranteeing a 10% monthly return for every one-lakh-rupee investment made under the scheme. To add credibility to the scam, he claimed to be using well-known exchanges like Binance and OKX. The victims of this scheme included a wide range of individuals such as local businessmen, politicians, government employees, traders, and other officials. Some victims even took out loans to invest in the scheme, only to suffer heavy financial losses.
Local police have launched an investigation into the matter following several complaints filed over the past month. This incident is just one of many crypto-related scams that have plagued India in recent years. The country has seen a surge in cryptocurrency adoption at the grassroots level, making it a lucrative target for scammers.
According to reports, between October 2023 and March 2024, Indian citizens lost around INR 500 crores (about $60 million) to various crypto-related scams. Last month, authorities investigated a crypto trading app that turned out to be an investment scam, resulting in over 700 victims losing more than $119,000 when the platform abruptly shut down. The operators of this scheme were reportedly connected to Hong Kong.
In a similar incident in August, police arrested four operators of a fake crypto trading platform that was involved in investment scams. These cases highlight the need for increased vigilance and regulation in the cryptocurrency space in India.
Despite being a leader in global crypto adoption, India is also facing challenges in combating fraudulent activities in the industry. As authorities continue to crack down on such scams, it is essential for investors to exercise caution and conduct thorough research before investing in any cryptocurrency scheme.