Crypto Scams

What is this scam?

Cryptocurrency scams have devastated young Indians who entered the crypto space hoping to build wealth quickly. The unique characteristics of cryptocurrency — transactions are irreversible, anonymous, and cross-border — make it the perfect tool for fraudsters. Once cryptocurrency is sent to a scammer, recovery is nearly impossible without a successful criminal investigation that traces the blockchain trail.

How it works — step by step

1. 1

   Scammer approaches via WhatsApp, Telegram, or dating apps — often posing as a successful crypto trader.

2. 2

   Victim is introduced to a 'profitable' platform with a professional interface showing large returns.

3. 3

   Small initial withdrawals are allowed to build trust (pig butchering technique).

4. 4

   Victim deposits increasingly large amounts — sometimes taking loans or selling assets.

5. 5

   When victim tries to withdraw a large amount, the platform demands 'tax,' 'insurance,' or 'KYC fee.'

6. 6

   Platform disappears or blocks the victim after extracting maximum funds.

Common variants (6)

🚩 Red flags — warning signs

• ⚠️Exchange or wallet app not listed on FIU-IND registered platform list — verify at fiuindia.gov.in
• ⚠️Withdrawal from platform requires paying additional 'tax,' 'verification fee,' or 'insurance'
• ⚠️Someone who met you online introduces you to a 'profitable' crypto platform
• ⚠️NEVER share your seed phrase or private key with any person, website, or application — ever
• ⚠️Any 'airdrop' that requires connecting your wallet — legitimate airdrops do not need wallet connection
• ⚠️'Investment manager' who claims to trade crypto on your behalf and shows profits but restricts withdrawals

✅ What to do if you've been targeted

1. 1Only use exchanges registered with FIU-IND — verify registration at fiuindia.gov.in
2. 2Never share your seed phrase, private key, or recovery phrase with anyone or any website
3. 3File complaint on cybercrime.gov.in — attach all transaction hashes, wallet addresses, and platform URLs
4. 4Contact Enforcement Directorate for large-scale crypto fraud — they have jurisdiction under PMLA
5. 5Preserve all blockchain transaction IDs — these are the digital trail for investigations
6. 6Call 1930 immediately for recent fraud — time matters for blockchain tracing

📋 Official resources & complaint portals

• →fiuindia.gov.in
• →cybercrime.gov.in
• →Enforcement Directorate: ed.gov.in
• →1930