A recent case of cryptocurrency fraud shocked the industry when a 62-year-old professor from Mumbai lost ₹1.93 crore to scammers.
How the Scam Occurred
The professor was befriended by a scammer named Ayesha on Facebook, who gradually gained his trust and suggested investing in cryptocurrency. Ayesha opened a Binance account with his credentials and asked him to deposit money before disappearing with the stolen funds.
Legal Action Against Cybercrimes
The Cyber West Division registered a case against unknown cybercriminals under various sections of the Information Technology Act. The National Cybercrime Reporting Portal, set up by the Reserve Bank of India, is now available for reporting such frauds.
Lack of Specific Crypto Laws in India
The Indian government planned to release a discussion paper to establish a regulatory framework for cryptocurrency, but laws were never enacted. Despite having over 100 million cryptocurrency users, India remains in a grey area regarding cryptocurrencies.
While India has established tax policies and anti-money laundering regulations, laws against cryptocurrency scams are still missing. Investors hope the government will soon release the discussion paper addressing necessary regulations.
