Crypto scammers nabbed in India for $700k fraud posing as a Japanese exchange

The police in India have arrested five suspects who would have dubbed a businessman out of about $ 700,000 via a false cryptocurrency negotiation platform.

According to local mediaThe five suspects, including a woman, were placed in police custody following an investigation by the cybercriminal wing of the branch of the crime of Odisha.

The accused would have led a scam using a trading can called Zaif, where they promised massive yields of up to 200% on digital currency investments. The commercial platform has been promoted as based in Japan.

It should be noted that Zaif is the name of a legitimate Japanese cryptocurrency exchange, which has undergone a $ 60 million hack In 2022. However, the platform used in this scam is probably not affiliated and simply borrowed the name to seem credible.

The fraud began when the victim, an Indian businessman, was contacted on Facebook by a woman claiming to be an IBM software developer based in Hong Kong.

She gained her confidence and convinced her to invest in the crypto via Zaif. More than a month, he transferred more than 6 INR crores (approximately $ 699,352) to various accounts controlled by crooks.

As is common in such crypto negotiation scams, the victim initially shown false profits on the platform to establish confidence. However, when the victim tried to withdraw gains, the platform asked additional 89 INR to unlock the funds – a tactic commonly called Fraud in advance of the costs.

Once the victim refused, the crooks have disappeared, cutting the contact.

Police have found suspects through digital trails and bank records. Authorities have seized phones, SIM cards, identification documents and other incriminating documents during a raid.

With cryptocurrencies again operating in a gray areaIndia remains a hot spot for scams and fraud targeting without distrust users. Earlier this month, the police repressed a similar scam which favored a false token called RSN and Promised 2% daily yields. The losses were estimated between $ 1.14 and $ 2.29 million.