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cryptocurrency crimes in India

Cryptocurrency crimes in India continues to grow

Among all the legal issues on cryptocurrency in India, the crime rate has increased alarmingly. This exactly was the fear among the deciding authorities. Since the anonymity in this space is the utmost, criminal prefer this as the medium to exchange payment for illegal goods. Slowly but surely, the situation is getting out of hand as the crypto crime is on the rise.

Sure, cryptocurrency has a lot of benefits over the fiat money. Considering the anonymity, cryptocurrencies, especially Bitcoin, are used to illegally trade things. This trend is becoming more and more prominent in the nation where internet is a basic necessity. If the government doesn't place strict measures, this crime rate is going to bring a Big chaos. 

One of the biggest cryptocurrency scams in India involved Bitcoin worth $300m. The company defrauded from the investors and the issue became widespread. Furthermore, many Bollywood celebrities were involved in this scam. The governmental authorities are investigating into this. 

Many criminals demand Bitcoins as ransom, illegal items, system hijack or ransomware. Phishing and hacking still remain the go-to ways for these kinds of criminal activities.

No doubt the cryptocurrency is meant to solve a lot of problems. In parallel, it came with a lot of problems that are really difficult to handle. Especially the cryptocurrency crimes in India is a steep challenge for the governmental officials. One of the biggest challenges the police officials face is tracing the altcoins. Also, it’s taking time for them to keep up the pace with the newly emerging industry.

Another company that is a fraud-prone is CoinOne. A peculiar thing about this company is that it follows pyramid scheme or chain scheme. Where one member adds new members, the new members add further new members and it goes on. To make it worse, over 400 potential investors have filed a complaint against the company.

The worst part about such fraudster companies is they come up with a lot of innovative plans that attract investors for get-rich-quick schemes. Many people are still unable to recover money that they invested in such schemes.

A local company MoneyTradeCoin, based out of Thane, Mumbai came into the lights as fraudsters. The company looted 500 Cr from 25,000 investors. Furthermore, the company approached the Delhi High Court against RBI banning the bank account dealing in cryptocurrencies. In between all this, the company pushed out a scheme that promised a heavy return but it was a scam. It pulled out $74 million USD from its users which are still unrecovered.

Another incident where a local exchang company, coinsecure lost 438 BTC, which is not a small number for such a small scale company. Again, the assets were stolen and the company couldn’t return the funds back to the investors.

We as investors should be well aware about the exchanges/companies we chose for investing. Most committed crime in this space is theft. A newly started cryptocurrency exchange service does not have proper infrastructure to keep the funds safe. Apart from this, obviously many criminals use cryptocurrency to pay for illegal goods, and this is another part of the story. Hence it becomes investor’s responsibility to make sure such activities do not rise. Invest only in trusted or certified companies/exchanges. Doing this will do away with a lot of problems.


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