Crypto Scam India: INR 10M Fraud Ties to Hong Kong Revealed

Crypto Scam India: Hong Kong Connection in Datameer’s INR 10M Fraud

Investigation Launched into Crypto Scams Scheme

Indian authorities are intensifying their investigation into the "Datameer" cryptocurrency trading app, which is suspected of defrauding at least 700 investors out of INR 10 million (approximately $119,000). The app, which emerged in April 2024, promised returns of up to 50% on investments supposedly made in cryptocurrencies. However, once users transferred their funds, the app was abruptly shut down and the scammers vanished.

How the Crypto Scam Operated

According to local reports, the Datameer app enticed investors with high-return promises and an attractive interface. The app’s fraudulent nature became apparent only after it was too late for many. The Superintendent of Police and Cyber Wing head, Pankaj Kumar Rasgania, reported that the scammers used social media platforms to lure investors, promoting the scheme's promise of substantial returns in a short period.

“The scammers lured gullible individuals through social media, encouraging them to invest in a scheme with promises of huge returns in a short period of time,” Rasgania stated.

Increasing Concerns Over Crypto Scams

India's surge in cryptocurrency interest, despite stringent tax regulations and unclear legal frameworks, has unfortunately opened avenues for Crypto scammers. The country topped Chainalysis’ 2024 Global Crypto Adoption Index, reflecting its growing crypto appetite, but also exposing investors to higher risks of fraud.

The Datameer scam, operational for five months, involved both small and large-scale investments. Preliminary investigations suggest that the perpetrators may be located across India, with some connections potentially extending to Hong Kong. Authorities are collaborating with cyber wing experts nationwide to unravel the case and bring the culprits to justice.

Broader Context of Crypto Scams

This incident highlights a troubling trend in the crypto space. Earlier in the year, the Enforcement Directorate (ED) charged 299 entities, including individuals of Chinese origin, under anti-money laundering laws for their involvement in the "HPZ Token" app scam. Moreover, a recent scam involved tricking an Indian doctor into transferring over $35,000 in a fraudulent drugs-in-parcel scheme.

These cases underscore the need for robust regulatory measures and increased vigilance in the rapidly evolving cryptocurrency sector to protect investors from such malicious schemes.