Two major cryptocurrency fraud cases have emerged from India today, highlighting the ongoing challenge of crypto-related scams despite regulatory efforts. In Ahmedabad, authorities exposed a ₹1.5 crore cryptocurrency fraud scheme that used fake mobile applications to lure victims with promises of high returns through crypto trading. The scam operated by showing victims fake profits on manipulated platforms before convincing them to transfer money to bank accounts that were quickly emptied.
Simultaneously, a property dealer in Bhopal named Lalit Namdev lost ₹18.5 lakh after being targeted through a similar scheme that began on social media in January 2026. The fraudsters used a fake trading application that promised substantial returns from both share and cryptocurrency trading, with a woman operator walking him through the supposed benefits and charging commissions.
These incidents are part of a broader pattern of crypto fraud across India, with recent cases including three senior citizens in Hyderabad losing ₹4.4 crore and a Pune techie losing ₹69 lakh. According to data from the Gujarat Legislative Assembly, Ahmedabad alone recorded 694 cyber fraud cases between February 2024 and January 2026, involving ₹134.45 crore in total losses.
The government has responded with enhanced enforcement measures, including the 'PRAHAAR' counter-terrorism strategy released in February 2026 that specifically targets crypto wallet usage by criminal networks. New powers under the Income Tax Bill, effective from April 1, 2026, now allow authorities to access crypto wallets, emails, and social media during authorized searches, though recovery rates remain low at less than 2% of reported losses.
