Indian authorities have successfully dismantled a large cryptocurrency scam in Assam, uncovering fraudulent activities that swindled over 2,000 victims, resulting in losses of approximately $2.4 million (₹20 crore). The police have arrested three individuals in connection with the scam, identified as Asad-ul Islam, Hashanur Zaman, and Kobad Ali Mollah, who are accused of operating the fraudulent scheme known as RSN Crypto.
The scam targeted residents of Assam and neighboring Meghalaya, luring them into investing in a crypto-based game that promised high returns. Victims were convinced to invest a minimum of $610 (₹50,000) with the allure of quick profits. However, after amassing substantial amounts of money, the perpetrators disappeared, leaving investors empty-handed.
Authorities believe the mastermind behind the scam, Hekmot Ali Sarkar, is still at large. The fraudsters collected funds through popular Indian digital wallets like Paytm and PhonePe, converting the money into Tether (USDT), a stablecoin, and then transferring the funds to overseas accounts. Investigations revealed that the fraudulent website was hosted on Amazon servers in China, suggesting potential international connections.
During the raid, police seized eight mobile phones, 11 SIM cards, and two laptops. The investigators also discovered that the criminals were renting their accounts to other offenders, further complicating efforts to trace the stolen money.
Although the Assam police have not disclosed the amount of recovered funds, the investigation is ongoing. This crypto scam adds to the growing list of similar fraudulent activities currently under investigation in India. Notably, the Central Bureau of Investigation (CBI) raided multiple locations last month as part of its probe into the GainBitcoin scam, which caused an estimated $800 million in losses. In another high-profile case, Ravi Mahaseth, the managing director of Coin ZX, was arrested in Mumbai for his involvement in a $23 million Bitcoin investment scam.
Meanwhile, the Enforcement Directorate (ED) has intensified its efforts, recently seizing $190 million in assets tied to the BitConnect Ponzi scheme. Despite these efforts, billions of dollars continue to be lost in crypto-related frauds. Authorities are urging the public to exercise caution and avoid investing in schemes that promise unrealistic, guaranteed returns.
The investigation into the Assam crypto scam continues, with police working to track down Hekmot Ali Sarkar and recover the stolen funds.
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