Odisha is once again in the headlines following the rise in cryptocurrency scams in India. A foreign gang operating in Odisha's Rourkula city was busted by police on Saturday, local media reported. The gang allegedly committed fraud worth $1.6 million.
Foreign cryptocurrency gang busted in India's Odisha state
The Indian state of Odisha has once again become the victim of a cryptocurrency scam, according to local media reports. This time, a cryptocurrency network that was allegedly leaked in Cambodia collapsed on Saturday. The suspected gang members are active across the country and have been active for the past year.
Racket members used fraudulent mobile applications to defraud consumers of approximately $1.8 million.
The gang's modus operandi included cyber fraud using fake cryptocurrencies. According to police reports, these individuals typically create fictitious applications and promise large profits to entice investors to buy other stocks. They created the India SEBI app, which helped them attract investments from across the country and abroad. Police later learned that the gang had been the target of up to 210 fraud cases in multiple states.
Cryptocurrency scams on the rise in India
India has been grappling with the rise in cybercrime in the country for quite some time. Just recently, another cryptocurrency scam occurred in the same state of Odisha, making it the second such incident in a month. Cryptocurrency scammers easily deceive Indian investors, according to a local media investigation. Most of these scams occur on the chat software Telegram.
Lack of regulation, inexperienced new investors, and lack of knowledge about digital media are the main factors that make Indian audiences fall prey to crypto scams.
Indian government tightens regulations to eradicate virtual currency fraud
The Indian government has begun enforcing stricter regulations to reduce the overwhelming amount of cryptocurrency fraud occurring in the country. Cybercrime police say the number of victims of cryptocurrency fraud and government official impersonation is on the rise.
To counter this dire situation, the Indian government is increasing its surveillance of the illegal cryptocurrency trading sector. Additionally, nine offshore Bitcoin exchanges have received show cause notices from the Financial Intelligence Unit (FIU). The FIU issued a statement alleging that both exchanges violate India's anti-money laundering regulations and are “operating illegally.”
The government has also added digital assets to its watch list. This means that virtual currency exchanges in India have become subject to money laundering laws.
