An Indian police officer was arrested for stealing Bitcoin worth INR 1.8 crore during a crypto scam investigation. The officer, named Chandradhar, was apprehended by the Special Investigation Team of the Central Crime Branch, marking the fourth arrest in the ongoing 2020 Bitcoin scam case. Chandradhar allegedly accessed Bitcoin wallets illegally, stole the cryptocurrency, and destroyed evidence related to the transactions. He faces multiple charges under the Indian Penal Code, along with two other police officers who were previously arrested for similar crimes.
India has been facing a rise in Bitcoin scams and frauds, leading regulators to increase oversight of the crypto sector. In May 2020, the Central Bureau of Investigation conducted a nationwide search operation to crack down on an app-based fraudulent investment scheme. The operation targeted two private companies and their directors involved in the HPZ Token App scheme, which promised high returns on Bitcoin mining investments. Investigators seized incriminating documents and digital evidence, revealing around 150 bank accounts used to collect funds from investors. The investigation into this scheme is ongoing.
The 2018 Gain Bitcoin Ponzi scheme, masterminded by businessman Amit Bhardwaj, defrauded over 8,000 individuals of INR 2,000 crore. Bhardwaj operated a multi-level marketing scam that promised high returns on Bitcoin investments through an 18-month contract guaranteeing a 10 percent yield. However, the scheme turned out to be fraudulent. In 2018, authorities seized $11 million from a British-Indian businessman who received 285 Bitcoin from Bhardwaj, highlighting the scale of the scam and its impact on investors.
The arrests of police officers involved in the Bitcoin scam case point to the misuse of power and authority to manipulate and access critical information unlawfully. The collaboration between law enforcement officials and hackers in stealing cryptocurrency raises concerns about the integrity of the Indian police force. The ongoing investigation into the crypto scams in India reflects the need for stronger regulatory measures and enforcement actions to protect investors and prevent fraudulent schemes from proliferating in the country.
The Indian authorities’ efforts to crack down on fraudulent schemes and scams in the crypto sector demonstrate their commitment to maintaining financial integrity and protecting consumers from exploitation. The seizure of assets and funds linked to Ponzi schemes like Gain Bitcoin sends a strong message to fraudsters and scammers operating in the cryptocurrency space. However, the persistence of such scams highlights the challenges and vulnerabilities in the digital asset ecosystem, emphasizing the importance of vigilance and due diligence when investing in cryptocurrencies. India’s evolving regulatory framework and enforcement actions will play a crucial role in deterring illicit activities and promoting a safe and secure environment for crypto transactions in the country.
