India’s crypto market has seen a troubling rise in crimes involving fake companies masquerading as legitimate entities to defraud investors.
Indian crypto traders have once again fallen prey to cybercriminals posing as legitimate business operators to defraud victims of their hard-earned money. According to a recent report from a local news outlet, the Cyber Police Station at Balangir, Odisha, has dismantled the operations of a fake exchange claiming to be legally registered and operational in the country.
The fraudulent platform, named GBE Crypto Trading Company, allegedly borrowed its name from GBE Brokers, a legitimate online brokerage based in Cyprus, in order to deceive investors. The perpetrators capitalized on the real company’s reputation to create a false sense of legitimacy for their scam.
Deceptive Tactics
The malicious actors promoted their fraudulent platform through WhatsApp, Telegram, and other social media channels, luring traders with enticing but fake offers. This scheme enabled them to steal approximately INR 7.6 million (equivalent to $90,604). However, they ran out of luck when the Cyber Police Station in Balangir, Odisha, received complaints from victims.
The police immediately swung into action and opened an investigation into the claims. During this period, authorities discovered that the fraudsters had employed fake mobile applications and websites under the guise of the GBE Crypto Trading Company to carry out their crime. To further shield their identities, they used VPN services to obscure their digital footprints.
In some cases, the criminals also hacked into people’s WhatsApp accounts, posing as the account holders to deceive and steal from others. Moreover, they obtained sensitive corporate and personal banking details, such as current and savings account information, debit cards, SIM cards, and online banking credentials, which they then used to siphon money, according to the police.
Police Arrest Four Men
Following an extensive investigation led by ASP Balangir, Amritpal Kour, the police apprehended four individuals involved in the scam. The suspects — Vikash Pareek, Pawan Singh, Vijay Raj Sharma, and Harshit Chauhan, aged between 21 and 33 — were taken into custody.
In addition to the arrests, authorities seized laptops, mobile phones, and other tools used in the operation. They also froze 60 bank accounts linked to the crime, which collectively held INR 8.5 million (approximately $101,334) at the time of seizure.
The Indian police said they are yet to establish a direct connection between the fake crypto trading firm, GBE Crypto Trading Company, and the Cyprus-based GBE Brokers.
A Growing Threat in India’s Crypto Market
India’s crypto market has seen a troubling rise in crimes involving fake companies masquerading as legitimate entities to defraud investors. Earlier this year, in January, the national police uncovered another fraudulent crypto exchange operated by a group of criminals.
The perpetrators had launched a crypto token called Dykan Coin, which they falsely promoted as the native token of the platform, DYFINEX, in an attempt to validate the scam.
The group, which was arrested for fraud, had also introduced staking services for Dykan Coin, which had a limited supply of only 1,000 tokens. To entice investors further, they offered free trips to Thailand for those who invested in the token. The scam was shut down following the arrests of those involved.
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