Binance, Indian police bust renewable energy scam, seize $100,000 in USDT

Binance and Delhi Police have busted a $100,000 scam that misled investors with false claims about India’s renewable energy initiatives.

Cryptocurrency exchange Binance teamed up with Indian police to bust a complex scam involving a fraudulent entity called “M/s Goldcoat Solar.” The operation, falsely claimed to be linked to India’s renewable energy initiatives, resulted in multiple arrests and the seizure of over $100,000 in Tether (USDT) stablecoin, Inc42 reported on Tuesday, October 15.

The scam centered on misleading claims that it had received rights from the Ministry of Energy to help India increase its solar power capacity to 450 gigawatts by 2030. Promising high returns, the plan misaligned itself with the country’s renewable energy targets, attracting a large number of investors. Binance reported that the scam is gaining momentum on social media, with fraudsters impersonating high-ranking officials and using the names of prominent dignitaries to increase credibility.

Victims were deceived by fake earnings reports purportedly from previous investors, which the syndicate used to build trust in the scheme, while investigators discovered that multiple SIM cards were activated under the identities of unsuspecting individuals to hide the true identities of the perpetrators. The report states that some of these SIM cards were even sent abroad, complicating the investigation.

Funds from victims were transferred through various bank accounts, some converted into crypto, further complicating tracking efforts. The report states that Binance assisted the Delhi Police by providing analytical support and helping investigators track the financial transactions in question.

This development follows Binance’s recent re-entry into India, where it has registered as a reporting entity with the Financial Intelligence Unit as part of ongoing efforts to comply with local regulations amid a crackdown on unregistered crypto platforms.