Indian police shut down fake crypto trading platform that stole over $90K

Law enforcement in India has arrested four individuals believed to be operating a fake cryptocurrency trading platform that managed to dupe victims of over $90,000.

According to local media, the scammers targeted investors by claiming to be representatives of a fake crypto trading platform dubbed GBE Crypto Trading Company. The name was likely chosen to fake a connection with Cyprus-based online brokerage firm GBE Brokers, the first thing that pops up when looking up “GBE crypto trading company.”

The scam was operated via several social media platforms, such as WhatsApp and Telegram, where the perpetrators circulated a fake trading application. To cover their tracks, the scammers reportedly used virtual phone numbers and VPN services.

Investigations by the Cyber Police Station at Balangir, Odissa, also uncovered domains registered to facilitate the scheme and impersonate legitimate trading platforms. However, whether the scammers were impersonating GBE Brokers has not been confirmed.

Using these tactics, the scammers reportedly managed to amass inr 7,600,000 (roughly $90,604).

Rishikesh Khilari, the Superintendent of Balangir Police, noted that over 60 bank accounts tied to the scam have been frozen, with a total inr 85 lakhs (approximately $101,334) seized at the time of reporting.

In January 2024, another crypto scam involving a fake cryptocurrency dubbed Dykan coin was shut down by the Balangir cyber police. Like the GBE crypto trading company, the scammers developed a fake crypto exchange called DYFINEX and offered trading and staking services to lure investors.

India remains a prime target for cryptocurrency scammers due to weak regulations and a general lack of awareness about digital currencies. As a result, scams that promote fake cryptocurrencies, trading platforms, and shady investment schemes often target retail investors.

One of the biggest incidents of 2024 involved the crack-down on the E-nugget scam, a fraudulent investment scheme that raked in roughly $10.7 million worth of cryptocurrencies. Another Ponzi scheme, uncovered in August, led to losses of over $890K disguised as a fake cryptocurrency called Emollient Coin.

Regulators in India are reportedly working on a discussion paper that will be published later this year. The paper is expected to lay the foundation for legislation regarding the crypto sector.