Guwahati: Cryptocurrency scams surface in Assam; investors looted

Staff Reporter

Guwahati: Where big sums of money and even bigger profits are concerned, scams always follow. And the same is true with cryptocurrency scams. Scammers are finding new ways to take advantage of people looking to make money, and they have made inroads into Assam as well. The arrest of several individuals connected with cryptocurrency scams has raised a red flag in the state.

In 2024, cryptocurrency and Bitcoin hit an all-time high. This created an urgency to invest in cryptocurrencies to make big money, along with a rise in scammers trying to take advantage of this craze. Victims are led to believe they are making money. They may even be able to withdraw small amounts of their “earnings” in the beginning, but in reality, the scammers are just manipulating victims into sending cryptocurrency to the scammer.

As part of the scheme, the so-called investment managers claim to have made millions investing in cryptocurrency and promise their victims that they will make money with investments. To get started, the scammers request an upfront fee. Then, instead of making money, the thieves simply steal the upfront fees. The scammers might also request personal identification information, claiming it is to transfer or deposit funds, and thus gain access to a person’s cryptocurrency.

As part of the scheme, the so-called investment managers claim to have made millions investing in cryptocurrency and promise their victims that they will make money with investments.

Such a scam was unearthed by the Assam Police in the early part of March when they busted a couple of multi-level cryptocurrency scams by cybercriminals operating from villages near the Assam-Bangladesh border. Police in western Assam’s South Salmara-Mankachar district arrested five persons running fraudulent cryptocurrency schemes. The schemes RSN Crypto Currency Token and Crypto TLC 2.0 offered monthly returns of up to 6% on investments through artificial intelligence-powered Forex trading.

Significantly, interrogation of the arrested accused revealed at least 1 lakh down-line members of the scheme, who put in more than Rs 200 crore in these multi-level schemes.

The police said the accused used online payment platforms such as PhonePe, Paytm, and Binance, a Chinese cryptocurrency exchange for Bitcoins, Ethereum, and Altcoins, to convert Indian rupees into U.S. dollar tokens before transferring the funds to unknown international entities. The victims paid anything from Rs 50,000 upwards.

Assam Police, in a warning on such scams, said greed and trust played important roles in people getting ripped off by scammers. The notice advised people to check whether permission was taken by the entity involved in such schemes and whether they really exist. The use of AI Forex bots was also mentioned.

Also Read: Assam: Three Arrested in South Salmara for Rs 20 Crore Cryptocurrency Scam

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