An Indian probe into a scam that fleeced local investors with promises of fixed monthly returns is underway. The scam, allegedly masterminded by a single individual named Ramanjaneyulu, has reportedly stolen at least INR 23 crores (approximately $2.7 million) from 320 people across Andhra Pradesh, with the number of victims possibly even further higher, according to a Nov. 4 Deccan Chronicle report.
Ramanjaneyulu allegedly offered investors 10 percent monthly returns on every one-lakh-rupee ($1,200) investment. He said he used popular cryptocurrency exchanges like Binance and OKX to make the scheme look legitimate. The scam, which has been running since 2021, ensnared everything from local businessmen to traders, government employees, and even politicians. Some victims went to such lengths as borrowing money to invest and then lost big money.
However, after a series of complaints about the fraudulent scheme last month, local police have launched a thorough investigation. The true value of this case in India is that high crypto adoption levels have become fertile ground for scams. Chainalysis credits India as the most crypto-admitted country in the world, and with legitimate and scummy investors alike looking in, India’s peculiar position hasn’t been downplayed.
Indian Authorities Warn of Rising Crypto Scams as Investor Losses Surge
India has seen some high-profile crypto scams in recent months. Between October 2023 and March 2024, Indian citizens collectively lost INR 500 crores ($60 million) to crypto-related frauds. Authorities only went after another crypto scam in which people lost their money playing with a fake trading app that allegedly promised 50% returns.
The app shut down abruptly, without even 700 victims getting any of their money back, and there was at least one loss of $49,000 combined. In August, the four scammers behind another crypto scam were arrested after they took advantage of unsuspecting investors with a hoax trading platform.
Indian authorities continue urging citizens to refrain from investing in cryptocurrency ventures while exercising due diligence, a particularly popular message for the many venturing for high returns at minimum risk.
