New Delhi [India]: The Central Bureau of Investigation (CBI) has registered a case against seven individuals for operating digital currency Ponzi schemes, defrauding investors of over ₹350 crore. The accused allegedly promised high returns through cryptocurrency investments and conducted transactions without regulatory approvals.
The case, registered under Section 120B and Section 420 of the Indian Penal Code (IPC) along with Section 66D of the Information Technology Act, 2000, highlights a wide-ranging criminal conspiracy involving organized cybercrime modules.
In a nationwide crackdown, the CBI conducted searches at 10 locations across seven states and union territories, including Delhi, Jharkhand, Punjab, Madhya Pradesh, Gujarat, Tamil Nadu, and Rajasthan. The operation led to the recovery of:
- ₹34.2 lakh in cash.
- Digital Virtual Assets worth approximately $38,414 (₹31.5 lakh) in cryptocurrency wallets.
- Incriminating evidence, including:
- 7 mobile phones, 1 laptop, 1 tablet, 3 hard disks, 10 pen drives, memory cards, and SIM cards.
- ATM and debit cards, email accounts, and several fraudulent documents.
The accused reportedly enticed investors by promoting unregulated deposit schemes through social media, offering unrealistic returns. The schemes were run without approvals from regulatory authorities such as the Reserve Bank of India (RBI).
The investigation revealed that proceeds from these scams were converted into cryptocurrencies to obscure their origins. The accused utilized multiple bank accounts and Virtual Digital Asset (VDA) wallets on popular cryptocurrency exchanges, including CoinDCX, WazirX, Zebpay, and BitBns. Over the past two years, transactions through these accounts and wallets exceeded ₹350 crore.
Victims were defrauded under various pretexts, including online loans, lucky orders, UPI fraud, and internet banking scams. The schemes were promoted across social media platforms and involved dissemination of false and deceptive information.
The investigation is ongoing, with CBI focusing on uncovering the full extent of the conspiracy and ensuring the safety of victims’ funds.