$200K Cross-Border Crypto Scam Busted: Binance Assists Ahmedabad Police in Major Crackdown
Ahmedabad Police, aided by Binance, cracked a $200K crypto scam targeting Indian investors. Three suspects were arrested, and the case underscores the growing cooperation between global exchanges and local enforcement.
In a significant breakthrough for crypto law enforcement in India, the Ahmedabad Cyber Crime Cell has successfully busted a $200,000 cross-border cryptocurrency scam. The operation was made possible with key assistance from Binance, one of the world’s largest cryptocurrency exchanges.
This latest crackdown adds to the growing number of cyber frauds involving digital currencies — and highlights the increasing collaboration between global crypto platforms and local authorities to combat crypto-related crimes.
The Scam: Luring Investors with Fake Crypto Promises
The busted scam involved fraudsters who targeted Indian investors through fake Telegram groups, social media ads, and spoofed websites. Victims were promised high returns on crypto investments, often shown screenshots of inflated wallet balances or fake profits to build trust.
Once investors sent funds — mostly in the form of USDT (Tether) or Bitcoin (BTC) — the scammers vanished, redirecting funds through a web of digital wallets and crypto mixers to obscure the trail.
Authorities estimate the total amount siphoned off was around ₹1.66 crore (~$200,000 USD).
Binance’s Role in Tracing the Funds
The investigation gained traction when Binance responded to a formal request for information. The exchange provided critical wallet trace data, transaction logs, and KYC details linked to wallets used in the scam.
Binance’s cooperation allowed law enforcement to identify key wallet addresses and freeze funds in transit, preventing further losses. The exchange’s compliance team also helped in mapping out the cross-border money trail that extended to wallets in Southeast Asia and Eastern Europe.
Three Arrests and Digital Evidence Seized
Following the leads, the Ahmedabad Cyber Crime Unit arrested three suspects from different parts of India, including Gujarat and Maharashtra. Authorities seized laptops, smartphones, SIM cards, and digital wallets, some of which had access to active crypto funds.
Forensic examination of the seized devices revealed:
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Multiple fake identities used to open exchange accounts
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Pre-scripted pitch decks and scam messages
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Transaction histories showing wallet-to-wallet laundering
Officials say more arrests could follow as they continue working with international agencies to identify accomplices abroad.
India’s Crypto Scam Epidemic
India has seen a surge in crypto-related frauds, ranging from Ponzi schemes to fake exchanges. In 2023 alone, cybercrime authorities reported over 1,000 cases involving crypto scams, leading to millions of dollars in investor losses.
The lack of awareness among new investors — combined with the semi-anonymous nature of crypto transactions — has made it a ripe ground for fraudsters.
But as this case shows, exchanges like Binance are increasingly willing to work with law enforcement, providing a much-needed check on crypto misuse.
Looking Ahead: More Regulation, More Oversight
The success of this operation also reignites discussions about clearer crypto regulations in India. While the government has imposed a 30% tax on crypto profits and introduced TDS rules, there is still no official regulatory framework for crypto assets or exchanges.
Stronger rules, combined with international cooperation and tech-driven policing, may help curb crypto crime while allowing legitimate innovation to flourish.
