The Uttar Pradesh Police cracked a major crypto-related scam after investigators uncovered a fraudulent investment network that siphoned ₹11.95 crore from unsuspecting victims. Officers arrested six individuals who ran the operation across multiple districts, and the police exposed a well-structured racket that used rented bank accounts, fabricated investment promises, and social-engineering tactics to trap hundreds of people. The case highlights the growing sophistication of digital fraud in India and the urgent need for stronger financial awareness among citizens.
The Scam Begins With False Promises
The fraudsters launched their scheme by creating online investment groups that claimed to offer high-return opportunities through cryptocurrency trading. They targeted victims through:
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WhatsApp and Telegram groups
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Social media ads
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Fake “financial advisor” profiles
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Cold calls and personalized messages
The group promised daily or weekly returns far higher than legitimate financial institutions. They used fabricated screenshots, fake profit statements, and doctored trading dashboards to convince potential investors that the scheme worked flawlessly. They also staged interactions within their chat groups by using dummy accounts that posed as happy investors.
The criminals gained trust quickly because they delivered small initial returns to early victims. These payouts did not come from actual crypto trading. The scammers used money from new investors to pay older ones, which strengthened the illusion of a legitimate investment platform. Many victims reinvested their “profits” without hesitation and even referred friends and relatives, allowing the scam to grow rapidly.
The Network Uses Rented Bank Accounts
The police revealed that the criminals did not use their own bank accounts at any stage. They rented accounts from people who needed quick cash. Some account holders received only ₹5,000–₹10,000 for access, while others unknowingly provided their details after responding to “work-from-home” job ads.
The scammers laundered victim deposits through these rented accounts. They moved money through several layers of transfers to hide the final destination. This strategy made the fraud extremely difficult to trace and delayed detection by authorities. Investigators discovered that the group handled more than thirty rented bank accounts across districts such as Kanpur, Lucknow, Ghaziabad, and Varanasi.
After receiving deposits, the accused quickly withdrew the money and converted large portions into cryptocurrency. They used international exchanges to shift funds out of the country, which complicated tracking and retrieval.
The Crackdown Begins
The scam came to light when multiple victims filed complaints at local police stations. Officers noticed that the pattern matched earlier crypto-fraud cases, so they escalated the investigation to cybercrime units. The police formed a special team that monitored digital transactions, communication channels, and suspicious bank movements.
Investigators tracked the IP addresses used to manage the fake trading dashboards. They monitored Telegram groups where the scammers recruited new investors and spotted links between different fraudulent investment rooms. The cyber unit traced unusual login locations and followed the chain of bank transfers until they identified the primary operators of the scheme.
The breakthrough came when one of the rented-account holders panicked after police questioning and revealed communication logs with the scammers. The investigators used this information to locate the core group behind the operation.
The police then conducted coordinated raids across multiple districts, seized electronic devices, froze bank accounts, and detained the individuals involved. Officers arrested six suspects who controlled the financial flows, managed online operations, and instructed lower-level recruiters.
Evidence Exposes the Operation’s Depth
The police recovered:
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Laptops containing transaction ledgers
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Mobile phones with thousands of chat messages
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Fake customer-service scripts
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Templates for profit statements
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Screenshots used to lure victims
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Bank passbooks linked to shell accounts
Investigators also uncovered crypto-exchange API keys and wallet addresses. These details gave them insight into how the scammers moved money into digital assets. Officers requested cooperation from crypto exchanges to track remaining funds and freeze any active wallets linked to the suspects.
The volume of evidence showed the organized nature of the fraud. The group operated with clear roles: some members handled customer communication, some managed technical dashboards, and others controlled bank transfers and crypto conversions.
Victims Describe Their Losses
Victims came from a wide range of backgrounds. The scam targeted:
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Working professionals
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Homemakers
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Small business owners
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Retirees seeking investment growth
Many victims invested their savings after the scammers earned their trust. Some individuals lost ₹50,000, while others lost lakhs. A few victims mortgaged valuables because they believed the investment would provide a stable future.
One victim reported that the group pushed him aggressively to “upgrade” his investment tier. They convinced him to deposit repeatedly by claiming that higher tiers unlocked exclusive trading tools and better returns. He realized the fraud only when the scammers deleted the chat group and blocked his number.
Another victim shared that customer support members acted polite and attentive until the moment she attempted to withdraw her funds. After she raised the request, the platform claimed her account had “violated guidelines” and demanded an additional processing fee.
Police Track Remaining Funds
The police now work with banks, the Enforcement Directorate, and cyber forensic agencies to recover as much money as possible. They analyze blockchain transactions in real time and trace the movement of funds across crypto wallets.
Many funds still sit in wallets controlled by the accused. Officers have frozen several accounts and contacted international platforms for compliance. The investigation continues, and authorities expect more arrests soon because the six suspects likely belonged to a larger network.
Authorities Warn the Public
The Uttar Pradesh Police issued strong warnings about digital-investment scams. Officers advise citizens to:
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Avoid investment schemes that guarantee high, fixed returns
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Verify financial advisors before sending money
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Avoid sending money to personal accounts
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Research platforms thoroughly
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Report suspicious behavior immediately
Cybercrime units across India now face rising crypto-related cases. Fraudsters misuse the public’s interest in cryptocurrency by offering unrealistic returns, fake mining schemes, and counterfeit trading apps. Officers stress that legitimate crypto platforms never guarantee profits or ask users to deposit money through unofficial channels.
Conclusion: A Wake-Up Call for Investors
The ₹11.95-crore crypto fraud in Uttar Pradesh demonstrates how quickly scams spread when criminals exploit technology and public curiosity. The police dismantled a well-structured operation, arrested key operators, and protected many future victims by exposing the truth. However, thousands of citizens still fall for similar traps every year.
Financial literacy and awareness must grow as rapidly as digital innovation. Investors must check credentials, question unrealistic promises, and avoid unregulated platforms. The case stands as a reminder that while cryptocurrency offers new opportunities, it also attracts sophisticated criminals who prey on trust and inexperience.
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