Indian Police Crack Down on Fake Crypto Exchange, Arrest Four

As a seasoned analyst with years of experience under my belt, I’ve seen my fair share of cybercrime schemes, and this latest one targeting Indian crypto traders is particularly alarming. It’s disheartening to see how these criminal masterminds continue to exploit the growing interest in cryptocurrencies, preying on unsuspecting investors with their deceptive tactics.


Once more, crypto traders in India have been victimized by cyber crooks disguising themselves as genuine business entities to swindle unsuspecting victims out of their savings. A local news source recently reported that the Cyber Police Station in Balangir, Odisha, has shut down a phony exchange, which falsely claimed to be legally registered and active within the nation.

It’s said that a questionable entity, known as GBE Crypto Trading Company, is accused of using the name of a genuine online brokerage called GBE Brokers, which is located in Cyprus, deceitfully. The individuals behind this platform exploited the reputation of the authentic company to establish an illusion of legitimacy for their fraudulent scheme.

Deceptive Tactics

Crooks spread their deceptive trading platform across WhatsApp, Telegram, and various social networks, tempting traders with appealing but bogus deals. This scam allowed them to pocket roughly 7.6 million Indian Rupees (approximately $90,604). Yet, their luck ran out when the Cyber Police Station in Balangir, Odisha, received grievances from victims.

Immediately following the allegations, the police promptly launched an investigation. During this inquiry, it was found that the offenders had been using deceptive mobile apps and websites, disguised as GBE Crypto Trading Company, for their illicit activities. To add another layer of secrecy, they utilized Virtual Private Network (VPN) services to conceal their digital trails.

As an analyst, I’ve uncovered instances where the perpetrators infiltrated individuals’ WhatsApp accounts, masquerading as the actual account holders to deceive others and pilfer their resources. Furthermore, they managed to acquire confidential corporate and personal banking details, including current and savings account information, debit cards, SIM cards, and online banking credentials. These ill-gotten details were subsequently employed to drain funds from these accounts, as reported by the authorities.

Police Arrest Four Men

Based on a thorough probe conducted by ASP Balangir, Amritpal Kour made arrests of four people implicated in the fraud case. The suspects, Vikash Pareek, Pawan Singh, Vijay Raj Sharma, and Harshit Chauhan (ranging from 21 to 33 years old), were apprehended and detained.

Alongside the apprehensions, authorities confiscated laptops, cell phones, and other instruments relevant to the operation. They also blocked 60 bank accounts suspected of involvement in the crime, containing approximately INR 8.5 million ($101,334) at the time of the block.

The Indian authorities have not found solid evidence linking the questionable crypto trading company based in India, GBE Crypto Trading Company, with the brokerage firm situated in Cyprus, GBE Brokers.

A Growing Threat in India’s Crypto Market

There’s been an alarming increase in crypto-related scams in India, with shady firms posing as genuine businesses to swindle investors. Just recently, in January, law enforcement agencies discovered yet another bogus cryptocurrency exchange run by a criminal gang.

As a crypto enthusiast, I found myself drawn into an enticing new project called DYFINEX, where I was introduced to a token named Dykan Coin. What I didn’t realize at first was that these creators were misleading me by presenting Dykan Coin as the native token of the platform. In hindsight, it seems they were trying to legitimize their scheme.

As an analyst, I recently uncovered a scheme involving a group that was apprehended for fraudulent activities. This notorious crew had also set up staking services for Dykan Coin, a digital currency with a meager 1,000 token circulation. To lure potential investors even more, they sweetened the deal by offering alluring trips to Thailand as an incentive for investing in the token. Regrettably, this deceptive scheme came crashing down after the arrests of those implicated in the scam.

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2024-08-26 15:53