In the wake of rising cryptocurrency scams in India, Odisha is once again in the news headlines. According to local media reports, police arrested a foreign gang operating in Odisha's Rourkela city on Saturday. The gang allegedly committed fraud worth $1.6 million.
Offshore cryptocurrency gang arrested in Odisha, India
According to local media reports, India's Odisha has once again become a victim of cryptocurrency scams. This time, a cryptocurrency network allegedly based out of Cambodia was discovered on Saturday. The alleged gang members were operating from different parts of the country and had been active over the past year.
Members of the racket used fraudulent mobile phone applications to defraud consumers of approximately $1.8 million.
The gang's modus operandi included online scams involving counterfeit cryptocurrencies. Police reports indicate that individuals usually create fake applications and use the promise of big returns to induce investors to buy various stocks. They created the India SEBI app, which allowed them to attract investments from all over the country and even abroad. Subsequently, police learned that the gang had been the target of as many as 210 fraud cases in several states.
Cryptocurrency scams increase in India
India has been facing a rise in cybercrime in the country for some time. Earlier, Odisha itself witnessed another cryptocurrency scam, making this the second incident in a month. Local media studies suggest that cryptocurrency scammers easily dupe Indian investors. Most of these scams are done via Telegram chat client.
Lack of regulation, inexperienced new investors, and lack of digital media knowledge are some of the major factors that influence the Indian public to fall prey to cryptocurrency scams.
The Indian government is tightening regulations to curb cryptocurrency scams
The Indian government has begun imposing stricter regulations to reduce the massive amount of cryptocurrency-related scams occurring in the country. The number of victims falling victim to cryptocurrency fraud and impersonation of government officials has risen, according to cybercrime police.
To combat this sad situation, the Indian government is increasing its scrutiny of the illicit cryptocurrency trading sectors. Additionally, nine offshore Bitcoin exchanges received a show cause notice from the Financial Intelligence Unit (FIU). The Financial Intelligence Unit sent a statement alleging that the trading platforms violated India's anti-money laundering regulations and were “operating illegally.”
The government has also added digital assets to its monitoring list. This means that cryptocurrency exchanges in India are now subject to money laundering laws.
