Crypto Scam in Rajkot: Businessmen Lose ₹1.08 Cr

In a grim reminder of the growing threat of cyber fraud in India, a Bhavnagar-based businessman and his friend were recently duped of more than ₹1.08 crore by cybercriminals who lured them into a bogus Bitcoin trading scheme through the popular messaging app Telegram.

The scam, which unfolded over a few months beginning in December 2024, showcases the sophisticated tactics employed by cyber fraudsters, the psychological manipulation involved, and the devastating financial consequences suffered by the victims.

Here is a detailed, chronological breakdown of how the entire scam unfolded — and the urgent lessons it holds for investors.

The Victims: Bhavnagar Businessman and His Friend

The primary victim is Deepak Solanki, a 40-year-old logistics businessman from Bhavnagar, Gujarat. His friend and partner in the investment, Adil Sheikh, also fell prey to the same fraudulent scheme.

Both individuals were lured with the promise of high returns through cryptocurrency investments, a domain that has seen increasing interest but also growing exploitation in India.

The First Contact: A Familiar Trap in a Digital Age

The fraudulent activity began on December 14, 2024, when Solanki received a message on Telegram — a messaging platform increasingly used by scammers due to its anonymity features.

The message was from a woman who identified herself as Priya Agarwal. She claimed to be a cryptocurrency trader and introduced Solanki to a platform that she alleged yielded exceptional profits through Bitcoin trading.

Key Manipulation Tactics Used:

Fake Identity: “Priya Agarwal” appeared professional and knowledgeable, sending friendly and frequent messages to build trust.
Fake Profit Screenshots: She shared screenshots of alleged trading profits, including withdrawal receipts, enticing Solanki into believing the platform’s legitimacy.
Psychological Pacing: She waited a few days to build rapport before sharing the trading link and inviting investment.

The Initial Investment: Small Start, Big Trap

After evaluating the shared materials and discussions, Solanki and Sheikh decided to jointly test the waters. On February 13, 2025, Adil Sheikh invested ₹2 lakh, and Deepak Solanki added ₹1 lakh.

Once the funds were transferred, their trading accounts showed a credit of $2,000, which further boosted their trust in the scheme.

Early Gains: The Bait of Success

The scamsters allowed small early profits to be displayed within the trading account dashboard.

On February 18, their account reflected a modest profit of $100.68.
On March 6, the profit rose to $184.94.
By March 12, their account balance had grown to $1,786.92.

On March 12, the scammers allowed them to withdraw $50 (₹4,000 approx) to Adil Sheikh’s bank account — a critical psychological tactic used in investment scams. By enabling this small payout, the scammers gained full trust of their victims, encouraging them to invest further.

The Escalation: Gradual Drain of ₹1.08 Crore

Following the initial success, both Solanki and Sheikh began transferring larger sums into what they believed were secure trading channels.

Timeline of Transfers:

Feb 13 – April 24, 2025: Multiple bank transfers were made to different domestic bank accounts.
Transaction Purpose Labels:
- Capital Gains Tax
- Regular Margin Equivalent
- Penalties
- Account Maintenance
- Withdrawal Charges

Each time, the scammers claimed that the next stage of profit withdrawal was just one more payment away.

These tactics are common in advance fee scams, where victims are asked to pay fees repeatedly under new pretenses — but never receive their promised returns.

By the end of the ordeal, the duo had transferred over ₹1.08 crore in total.

The Turning Point: Realization of the Scam

The victims’ trading account showed a final displayed balance of $3.57 lakh (approx. ₹2.97 crore). However, no further withdrawals were allowed.

Every time they tried to initiate a large withdrawal, they were told:

“Compliance issues pending”
“You must first clear capital tax”
“Transaction blocked due to banking policy”

When no funds were returned, and Priya Agarwal stopped responding, the horrifying truth began to unravel.

Solanki contacted his bank and cross-verified the recipient accounts — and finally realized he had been thoroughly defrauded.

The Fraud Network: Possible Links to International Crime Rings

Though the perpetrators used Indian bank accounts, many such scams are operated internationally, often via countries like China, Singapore, and UAE.

Investigators suspect:

The Telegram contact was using VPNs or fake numbers.
The scam platform may have hosted data on offshore servers.
Layered transactions were used to confuse money trails.

A cybercrime complaint has now been filed in Rajkot, and officials are likely to forward the investigation to central cybercrime authorities due to the scale and cross-border nature of the fraud.

How the Scam Worked: Breakdown of the Methodology

Step	Action	Victim’s Response
1	Telegram contact initiated	Curiosity, response to messages
2	Fake profit screenshots shared	Belief in opportunity
3	Initial investment of ₹3 lakh	Trust begins to form
4	Fake profits shown in dashboard	Encouraged further funding
5	Small withdrawal allowed	Cemented belief in authenticity
6	Series of escalating payments	Greed & sunk cost fallacy set in
7	Refusal to allow larger withdrawals	Panic and doubt arise
8	Disappearance of scammer	Realization and complaint

Psychological Triggers Exploited in the Scam

Scammers expertly manipulate emotional and psychological levers:

Greed: The promise of high profits triggered desire.
Trust: Friendly online chats and ‘successful’ withdrawals built confidence.
Reciprocity: Scammer appeared helpful, so victims felt compelled to comply.
Sunk Cost Fallacy: Victims kept investing to “recover” what they had already paid.

This reflects how anyone, regardless of intelligence or background, can be victimized if manipulation is persistent and convincing.

Legal and Investigative Action

Complaint Registered:

Location: Cybercrime Police Station, Rajkot
Date: Late April 2025
Status: Preliminary inquiry initiated, accounts under probe

Law enforcement is now coordinating with:

Banks to track funds
SEBI and RBI to investigate unauthorized financial schemes
CERT-In (India’s cybersecurity nodal agency) to trace IP logs and international connections

Given the lack of regulatory oversight in crypto markets, such cases highlight the urgent need for crypto investor protection laws in India.

Expert Opinion: Red Flags That Were Missed

Cybersecurity experts and financial analysts point out several red flags Solanki and Sheikh missed:

Telegram-based Investment Offers: Legitimate investments rarely begin via anonymous apps.
No Registered Entity or Website: The trading platform shared had no verifiable business license or regulatory listing.
Repeated Fees for Withdrawal: No genuine trading platform asks for “capital gains tax” upfront — this is the tax authority’s job.
Pressure Tactics & Delays: Repeated excuses are a classic scam indicator.

Tips to Avoid Online Crypto Investment Scams

If you’re considering crypto investments, follow these safety guidelines:

Verify Platforms: Always check for SEBI-registered platforms or exchanges.
Never Send Money to Individuals: Legit platforms don’t accept personal account transfers.
Watch for Red Flags: Unrealistic returns, urgency, or secrecy are signs of fraud.
Start Small, Stay Skeptical: Don’t escalate investment unless you’ve validated authenticity.
Use Known Exchanges: Stick to platforms like CoinDCX, CoinSwitch, or international leaders like Binance and Coinbase — and do your own research.
Report Suspicious Activity: Visit https://cybercrime.gov.in

Conclusion: Wake-up Call for Crypto Enthusiasts

The Rajkot crypto scam that claimed ₹1.08 crore from two unsuspecting investors is not just a story of monetary loss — it’s a lesson in digital vigilance.

Cryptocurrency may be the future of finance, but the road to returns is paved with caution. As cybercrime continues to evolve, so must public awareness.

Investors must: