News Report Technology
November 07, 2023

Indian Authorities Uncover Crypto Scam, Government Officials Among Victims

In Brief

The scale of Indian crypto fraud was staggering, with nearly 5000 crore rupees (around USD 676 million) involved, affecting over one lakh victims.

Indian authorities are making strides in cracking down on a massive cryptocurrency scam that has ensnared thousands of individuals, including government employees and police personnel in Himachal Pradesh, a northern state of India.

According to reports, the scale of the fraud was staggering, with nearly 5000 crore rupees (around USD 676 million) involved — affecting over one lakh victims.

The Special Investigation Team (SIT) constituted by the Indian state government has been working diligently to unravel the complex web of this cryptocurrency scam. So far, it has identified ten key suspects who played a pivotal role in orchestrating this fraud, which is believed to have operated from Dubai.

It is important to note that the regulatory body for the securities and commodity market in India – the Securities and Exchange Board of India (SEBI) had not provided clearance for such cryptocurrency-related activities, making it clear that investment in these schemes was fraught with danger.

Deputy Chief Minister of the state, Mukesh Agnihotri, addressed the press on the ongoing investigation, underscoring the government’s commitment to bringing the perpetrators to justice. The government has already apprehended ten individuals involved in the crypto scam, with the promise of more arrests on the horizon.

Several reports suggest that the minister minced no words in assuring the public that the “kingpins of the cryptocurrency fraud will not be tolerated.”

The scam, which operated under the guise of a cryptocurrency named ‘Korvio Coin‘ (KRO), lured unsuspecting investors with promises of high returns within a short timeframe. This widespread deception quickly spread to government employees, including state police personnel, as well as individuals who had received compensation for their land acquired for various infrastructure projects.

Government Officials Reportedly Involved in Scam

What sets this investigation apart is the scale of the involvement of government officials and law enforcement personnel.

Several government employees were tempted to invest their hard-earned savings into the scam, with some even resigning from their jobs to pursue quick riches. Those who had received compensation for land acquisition for the construction of four-lane roads were also targeted, compounding the scam’s impact on the community.

The extent of the fraudulent activity has continued to expand, with the authorities receiving over 300 complaints, reflecting the widespread impact on the region. In an alarming twist, it has been revealed that around Rs 500 crore (approximately USD 67 million) of the victims’ hard-earned money is unlikely to be recoverable, underscoring the devastating consequences of the scam.

State officials have made an impassioned plea to the people of Himachal Pradesh and beyond, urging them not to fall prey to such fraudulent schemes.

As the investigation unfolds, the Indian authorities are committed to ensuring that justice is served and that the masterminds behind the crypto scam are held accountable.

This case serves as a stark reminder of the growing challenges faced by authorities worldwide in combating cryptocurrency-related frauds and scams. The rapid proliferation of digital currencies has opened new avenues for criminals, and law enforcement agencies are faced with the monumental task of safeguarding investors and bringing perpetrators to justice.

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About The Author

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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Kumar Gandharv
Kumar Gandharv

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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