Indian police shut down fake crypto trading platform that stole over $90K

Law enforcement agencies in India have arrested four people believed to be running a fake cryptocurrency trading platform that managed to scam victims out of more than $90,000.

According to local media, scammers targeted investors by claiming to be representatives of a fake crypto trading platform called GBE Crypto Trading Company. The name was likely chosen to establish a fake connection to Cyprus-based online brokerage firm GBE Brokers, which is the first thing that comes to mind when searching for “GBE crypto trading company.”

The scam was carried out via various social media platforms including WhatsApp and Telegram, where the perpetrators circulated a fake trading app. The scammers reportedly used virtual phone numbers and VPN services to cover their tracks.

Investigations by the Cyber ​​Police Station in Balangir, Odissa, also revealed domain names registered to facilitate the scheme and impersonate legitimate trading platforms. However, it has not been confirmed whether the fraudsters were impersonating GBE Brokers.

The scammers reportedly managed to collect over INR 7,600,000 (approximately $90,604) using these tactics.

Balangir Superintendent of Police Rishikesh Khilari stated that more than 60 bank accounts linked to the scam have been frozen and a total of INR 85 lakh (approximately $101,334) worth of cash has been seized at the time of reporting.

In January 2024, another crypto scam involving a fake cryptocurrency called Dykan coin was shut down by the Balangir cyber police. Like the GBE crypto trading company, the scammers developed a fake crypto exchange called DYFINEX and offered trading and staking services to lure investors.

India remains a prime target for crypto scammers due to weak regulations and a general lack of awareness about digital currencies. As a result, scams promoting fake cryptocurrencies, trading platforms, and shady investment schemes often target retail investors.

One of the biggest incidents of 2024 was the crackdown on the E-nugget scam, a fake investment scheme that raised around $10.7 million worth of cryptocurrencies. Another Ponzi scheme uncovered in August led to the loss of over $890,000 by disguising itself as a fake cryptocurrency called Emollient Coin.

Regulators in India are reportedly working on a discussion paper to be published later this year, which is expected to form the basis of legislation related to the crypto sector.