Indian police probe INR 10m crypto investment scam with suspected link to Hong Kong

Indian police are investigating cryptocurrency trading app ‘Datameer’ which allegedly defrauded at least 700 locals of INR 10 million.

According to a local report, the scheme promised returns of up to 50% to unsuspecting investors whose money was said to be invested in cryptocurrencies.

After investors transferred their money through the fake app, the app was shut down and the scammers disappeared. During its active period, the scam managed to defraud investors of more than INR 10 million (approximately $119,000).

India has witnessed a surge in crypto demand despite the lack of robust crypto regulations and a punitive tax regime, and the country managed to grab the top spot on Chainalysis’ Global Crypto Adoption Index 2024. However, this growing appetite for crypto has opened the doors for scammers who exploit this hype.

The Datameer app, which was reportedly launched in April 2024 and remained active for five months, has managed to attract both small and large investments, said Pankaj Kumar Rasgania, Director General of Police and Head of Cyber ​​Unit.

“The fraudsters lured gullible people through social media into investing in a scheme with promises of huge returns in a short period of time,” he added.

Preliminary investigations suggest that the perpetrators behind the app are spread across the country, with some evidence pointing to connections in Hong Kong. Authorities are currently coordinating with cyber-wing experts from police forces across the country, and more information will be released as the investigation progresses.

Such scams have raised concerns because of their possible international links, particularly to locations in China. Similar links have emerged in other cases previously investigated by Indian authorities.

In March, the Enforcement Directorate (ED) filed a chargesheet under anti-money laundering laws against 299 entities, including individuals of Chinese origin, linked to a mobile app called “HPZ Token” that allegedly lured investors with promises of high returns from cryptocurrency mining.

In another incident, crypto scammers tricked a doctor in India into transferring more than $35,000 in a drug package scam. Authorities found that the stolen funds were funneled through multiple bank accounts, exchanged for cryptocurrencies, and transferred to accounts in China and Taiwan.