Indian Investor Loses $221K in Crypto Scam

• A businessman from India lost approximately Rs. 1.92 crore ($221K) in a sophisticated digital currency fraud.
• The scammer reached out on Facebook and later convinced him to join the investment plan.

An Indian investor has lost Rs. 1.92 crore ($221K) in cryptocurrency after being tricked by a complex fraud on Facebook. The 48-year-old entrepreneur from Ahmedabad learned a costly lesson after falling for a sophisticated fraud. It all started with a simple Facebook friend request, which he accepted.

However, the conversation moved very fast, and there was an exchange of numbers. Before he knew it , the man was introduced to a cryptocurrency investment platform that seemed very promising.

How the Indian Businessman was Tricked Into Investing in A Crypto Scam 

The complaint filed a case with the Cybercrime police on Friday stating that the fraud began in August 2024 when he received a Facebook friend request from a woman who claimed to run a gym equipment business in Dubai and Mumbai. 

The scammer reached out to the businessman after coming across his profile. She sent a message claiming that his account caught her attention while browsing friend suggestions and asked if they could connect. 

After he replied, their conversation continued, and they moved over to WhatsApp. Over time, she introduced a promising cryptocurrency investment, claiming that her uncle, a senior officer at a major American financial company, would guide him through the process of investing.

The Indian businessman searched online and found the company to be legitimate. Attracted by the promise of high returns, he quickly invested $500 and earned a $250 profit.

He was encouraged by this, so he sent more money, which now accumulated to  about Rs 6 crore ($692K) on the platform. However, when he tried to withdraw Rs 77 lakh, he was asked to pay a 20% tax first. Shortly after, the woman disappeared, and upon further investigations, it showed that the platform was a scam.

After realizing that he had been scammed, as he was only able to recover Rs 92,000 recovered from his Rs 1.92 crore investment, the businessman reported the case to the Cybercrime police. Authorities registered a complaint for criminal conspiracy, cheating, breach of trust, and impersonation against the unknown fraudster. 

The incident shows the need for better awareness of the whole cryptocurrency space, as it can be clearly seen that the scammer took advantage of the victim’s lack of knowledge. 

Officials have also warned the public to be cautious of individuals promoting crypto investment schemes, as many are fraudulent. They advise traders and investors to use reputable platforms and seek guidance from experienced professionals to help them reduce the risk of financial loss.

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