CBI Busts Multi-City Digital Currency Ponzi Scheme: ₹350 Crore in Fraudulent Crypto Transactions, 7 Arrested
(Judicial Quest News Network)
New Delhi,24, January,2025. In a major crackdown on cybercrime and financial fraud, the Central Bureau of Investigation (CBI) has registered a case involving seven individuals accused of running a large-scale Ponzi scheme based on cryptocurrency investments. The scam, which spanned multiple states and promised high returns, has been linked to transactions exceeding ₹350 crore. The accused are now facing charges under various sections of the Indian Penal Code (IPC) and the Information Technology Act, 2000.
The CBI’s investigation centers on the illegal activities of a network of individuals operating from different cities across India, including Delhi, Hazaribag, Bathinda, Ratlam, Valsad, Pudukkottai, and Chittorgarh. The accused are alleged to have engaged in a coordinated conspiracy to deceive investors by promoting unregulated digital currency Ponzi schemes, which operated without any approvals from regulatory bodies such as the Reserve Bank of India (RBI).
The CBI’s operations led to searches at 10 locations across seven states and Union Territories, namely Delhi, Jharkhand, Punjab, Madhya Pradesh, Gujarat, Tamil Nadu, and Rajasthan. During the searches, authorities recovered a significant sum of ₹34.2 lakh in cash, along with critical digital evidence, including seven mobile phones, one laptop, one tablet, three hard disks, 10 pen drives, memory cards, SIM cards, ATM/debit cards, email accounts, and a number of incriminating documents.
Moreover, the CBI has secured Digital Virtual Assets worth approximately USD 38,414 in the cryptocurrency wallets linked to the accused. These virtual assets have been safely digitized and will play a key role in the ongoing investigation.
The Ponzi scheme was largely promoted via social media groups, where false and misleading information was disseminated to attract unsuspecting investors. A deep analysis of bank transactions and cryptocurrency wallets has revealed that the illicit funds were often converted into cryptocurrencies to hide the proceeds of crime and launder money.
The investigation has uncovered that the accused individuals maintained multiple bank accounts and Virtual Digital Asset (VDA) wallets across several prominent cryptocurrency exchanges, such as CoinDCX, WazirX, Zebpay, and BitBns. Over the last two years, these accounts and wallets were used to conduct transactions totaling more than ₹350 crore. Victims of the scheme were allegedly lured with promises of online loans, lucky orders, and other fraudulent schemes involving UPI and internet banking frauds.
As the investigation progresses, the CBI is working to trace additional financial networks and uncover the full extent of the fraudulent activities. Further actions, including the identification of more victims, are anticipated as part of this expansive probe.
