Cryptocurrencies are quite popular in India. Unfortunately, so are crypto crimes. Scammers and fraudsters are becoming braver, bolder, and more creative with their malicious schemes. While there are crypto scammers all over the globe, the ones in India seem to be starting a trend in the country.
Phishing and hacking are the most common methods people use to siphon information and money off of others. However, MLM schemes and even grave criminal offenses like ransom and outright robbery are surfacing as well.
Authorities are finding it hard to solve these scam problems because the people are seemingly very keen on investing in cryptocurrency-related investment products and programs and scammers are taking advantage of this.
The more people jump into these investments without doing their own research, the more scammers go on with their scamming.
The $300 Million Bitcoin Scam
The GainBitcoin scam has to be one of the biggest ones in India to date. The GainBitcoin company set up a classic Ponzi scheme siphoned $300 million worth of bitcoin from unsuspecting investors. This scam was so popular that Bollywood celebrities also got involved in the scam.
The investigation on this scam is still underway though the many other scams going on in the country are keeping authorities’ hands full.
OneCoin and Co.
One good example of this is OneCoin. Though it has already been allegedly proven to be a scam, many people are still engaging in the business which uses MLM tactics in operations. Over 400 investors have filed complaints against this company and have yet to recover their investments.
Another example would be MoneyTradeCoin or MTC that has recently been busted by the local police as another Ponzi scheme.
Sad news for Crypto when it’s legality is sub judice in India! @moneytradecoin (MTC) is reportedly busted by Mumbai Police as a Ponzi scheme involving fraud of Rs. 500 Cr. The same MTC had approached Delhi High Court against RBI banking restriction!!https://t.co/05QVv0SEpU
— Crypto Kanoon (@cryptokanoon) June 5, 2018
Targeting Crypto Exchanges
Cryptocurrency exchanges are the biggest targets of these scammers and hackers. Earlier this year, Coinsecure lost 438 BTC to a hack attack and regulators are scrambling to create a regulatory framework for the industry in order to help lessen the risks.