India’s financial and crypto landscape witnessed another shockwave when the police accused celebrity hairstylist Jawed Habib and his son Anas Habib of orchestrating a large-scale crypto scam. According to the allegations, the duo lured hundreds of investors with promises of extraordinary returns, pocketed their money, and then vanished. Victims claimed that they invested lakhs of rupees in the hope of multiplying their wealth, only to realize later that the father-son duo manipulated them. The case has now become a high-profile reminder of how celebrity status and the booming but loosely regulated crypto market create a dangerous cocktail for fraud.
The Rise of the Scam
Jawed Habib built his reputation in the grooming industry, running one of India’s most recognizable salon chains. With his name carrying weight across metros and small towns alike, many people trusted him implicitly. His son, Anas, leveraged this credibility when he pitched a crypto investment scheme.
He promised investors a guaranteed 2–3x return within a few months. He also claimed that their funds would go into a basket of safe tokens and global trading strategies. He reportedly used flashy presentations, WhatsApp groups, and personalized meetings to convince people that the plan carried no risk. He projected the scheme as a way to create “financial freedom” and align with India’s growing crypto adoption.
The duo used this aura of trust and financial aspiration to attract professionals, small business owners, and even students. Victims claimed that the Habibs convinced them by saying: “When we can style celebrities, we can also style your financial future.”
How the Scheme Operated
According to the police investigation so far, Anas took the lead in collecting money. He used bank transfers, crypto wallets, and sometimes even cash deposits. He maintained Excel sheets of investors and sent them regular updates about their “growing” returns. The numbers, however, only existed on paper.
He reportedly told investors that their funds were staked in stablecoins like USDT or invested in decentralized finance protocols with assured interest. Some victims also revealed that Anas showcased screenshots of crypto wallets with inflated balances to build confidence.
Jawed, while not directly involved in the technical pitch, allegedly gave personal assurances. Victims said that his presence at meetings created a sense of security. His celebrity status acted as an anchor, convincing even skeptical individuals to invest.
The Breaking Point
By mid-2025, cracks began to appear. Investors who requested withdrawals faced delays. Anas reportedly gave excuses such as “technical issues on exchanges” or “international remittance delays.” Some investors received partial amounts to pacify them, but the majority got nothing.
Finally, when a group of investors demanded their entire principal back, the duo allegedly disappeared. Victims claimed that both father and son stopped responding to calls, dissolved WhatsApp groups, and even shut down some salon outlets overnight.
Dozens of complaints flooded the local police stations. As the number of victims grew, the Uttar Pradesh Police’s cybercrime cell took over the investigation. Preliminary estimates suggest that the scam involved ₹50–70 crore.
The Police Case
Police officers filed an FIR against Jawed and Anas under multiple sections, including criminal breach of trust, cheating, and violation of financial regulations. They also invoked provisions of the Information Technology Act, since cryptocurrency transactions and digital platforms formed the core of the scam.
Authorities confirmed that both individuals absconded. Teams conducted raids at multiple addresses but found no trace of them. Police sources revealed that the duo may have fled abroad, possibly using crypto channels to move money outside the country.
Investigators also froze some linked bank accounts and requested major Indian exchanges to flag suspicious wallets associated with the Habibs.
Impact on Victims
The victims’ stories highlight the deep financial and emotional scars of such scams. Many middle-class families invested their savings, hoping to secure education funds for their children. Some elderly individuals diverted their retirement corpus into the scheme, believing the Habibs’ promises of “safe growth.”
One victim, a small-town businessman, admitted he trusted Jawed because of his brand image: “I thought, if a man with hundreds of salons can’t be trusted, then who can?” Another victim, a software engineer, revealed that he even convinced his colleagues to join, and now they blame him for their losses.
Several investors have organized themselves into an action group to pressure authorities. They stage protests, demand speedy justice, and want the government to tighten crypto regulations.
The Celebrity Factor
The case sparks debate about how celebrity status often blinds investors. Jawed Habib built his empire by becoming the face of modern grooming in India. He appeared on television, endorsed products, and represented Indian hairstyling globally. That level of recognition created an illusion of credibility beyond his actual expertise.
When his son entered the crypto space, many assumed that Jawed’s involvement ensured legitimacy. This trust, however, became the weapon that allegedly enabled the scam. Financial experts now warn investors to never equate celebrity branding with investment safety.
Larger Lessons for India’s Crypto Market
This case adds to India’s growing list of crypto frauds. Lack of clear regulation creates a fertile ground for such scams. While India introduced a tax regime on digital assets, it still lacks a comprehensive framework to license operators, monitor exchanges, or penalize fraudsters effectively.
The Habib case highlights three urgent lessons:
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Due Diligence: Investors must research projects thoroughly instead of trusting names or promises.
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Regulation: The government must create a licensing system for crypto service providers, similar to banking.
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Awareness: Financial literacy campaigns must highlight the risks of unregulated digital assets.
Experts argue that until India tightens its regulatory grip, celebrity scams will keep reappearing in different forms—crypto today, NFTs tomorrow, and maybe metaverse investments next.
The Road Ahead
The case now depends on how quickly authorities track down the duo. Extradition may become necessary if they fled abroad. Legal experts also expect long trials, as defense lawyers will argue about the unregulated nature of crypto and its lack of legal clarity.
For victims, recovery looks bleak. Unless investigators seize crypto wallets or assets linked to the Habibs, investors may never see their money again. Even if the police recover some funds, distribution among hundreds of victims will remain a complex legal process.
Conclusion
The alleged crypto scam by Jawed Habib and his son Anas stands as a stark reminder that trust built in one industry cannot automatically extend into another. Investors believed in a celebrity, not in the fundamentals of finance, and paid the price. The father-son duo used charisma, reputation, and promises of easy wealth to manipulate hundreds of people.
The case must push regulators to act faster. Crypto continues to grow in India, attracting millions of new investors every year. Without safeguards, these investors remain exposed to manipulation and fraud.
India’s financial future depends not just on innovative tools like crypto but also on strong regulation, investor education, and accountability. Until then, stories like this will keep surfacing, each leaving behind broken trust and ruined lives.
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