Five individuals, including one woman, were arrested in India for a large-scale cryptocurrency scam that defrauded a trader of nearly $700,000. The perpetrators used a fake trading app disguised as a legitimate Japanese crypto exchange.

🕵️‍♀️ Scam Disguised as Japanese Exchange ZAIF

The fraudsters created a fake platform named ZAIF, offering outrageous returns of up to 200%. The app was promoted as a Japanese-based crypto exchange to appear credible.

It’s important to note that ZAIF is the name of a real Japanese exchange, which suffered a $60 million hack in 2022. However, this fraudulent platform had no actual affiliation and simply borrowed the name to gain trust.

🎯 Facebook Trap – Fake IBM Developer from Hong Kong

The victim, an Indian trader, was contacted on Facebook by a woman claiming to be a software developer at IBM based in Hong Kong. She built rapport and convinced him to invest in crypto via the fake ZAIF app.

Within a month, the man had transferred over 6 million INR (approximately $699,000) across various accounts controlled by the scammers.

📉 Classic Setup: Fake Profits, Then More Money Demanded

As is common in crypto scams, the platform initially displayed fake profits to lure the victim in further. However, when he tried to withdraw his funds, the app demanded an additional 89 lakh INR (over $100,000) to “unlock” his balance — a well-known advance fee scam tactic.

Once the victim refused to pay, the fraudsters vanished and cut all contact.

🚔 Police Crackdown: Digital Trail Leads to Five Suspects

By analyzing digital footprints and bank records, investigators tracked down and arrested five individuals. During the raid, authorities seized phones, SIM cards, fake IDs, and other incriminating materials.

⚠️ India: A Growing Hotspot for Crypto Frauds

Due to unclear crypto regulations in India, the country remains a high-risk zone for investors. Earlier this month, police also cracked down on a similar scheme involving a fake token called RSN, which promised 2% daily returns. Estimated losses ranged from $1.14 million to $2.29 million.

🧠 Final Word: Be Cautious Who You Trust Online

This case is another stark reminder that crypto markets attract both opportunity and deception. Before investing, always verify the legitimacy of a platform and never fall for guaranteed profit promises — they’re often the first red flag.


#Cryptoscam , #CryptoFraud , #CryptoSecurity , #CyberSecurity , #StaySafe


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