Cryptocurrency Fraud Syndicate Worth 260 Crores Disrupted by ED in Delhi, NCR, and Gurugram
In the rapidly evolving world of cryptocurrency, India has witnessed a concerning surge in financial crimes this year. A series of high-profile cases, widespread fraud, and growing regulatory scrutiny have marked 2025 as a significant year for crypto-related crimes in the country.
Crypto Thefts Soar in India and Globally
The first half of 2025 has seen crypto thefts exceed $2.17 billion globally, already surpassing the total for all of 2024. Notable incidents in India include the $44 million breach at CoinDCX and the $1.5 billion ByBit hack, one of the largest ever recorded.
Money Laundering and Fraud Syndicates Target Indian Youth
Law enforcement agencies have uncovered money laundering and fraud syndicates using Indian youth as unwitting "money mules" to move illicit crypto funds. In one instance, police in Lucknow identified around 60 young individuals whose bank accounts were exploited for laundering crores of rupees disguised as crypto trading activities.
Large-Scale Frauds and Judicial Involvement
A notable $240 million crypto fraud affecting over 80,000 Indian investors led to the denial of bail for the primary suspect, Abhishek Sharma, by an Indian high court. The court emphasized the gravity of the fraud, its societal impact, and the necessity to keep key perpetrators in custody for further prosecution.
Regulatory Response and Calls for Stronger Frameworks
Authorities and courts are playing a stronger role in investigation and prosecution, though calls for more comprehensive regulatory frameworks and consumer protections continue. The regulatory environment in India is increasingly responsive due to the escalation in fraud.
Key Trends
| Aspect | Details | |--------------------------------|-----------------------------------------------------------------------------------------------------| | Total crypto thefts (2025 H1) | Over $2.17 billion globally, including $44M CoinDCX breach | | Major hacks | $1.5 billion ByBit hack (largest ever), CoinDCX breach | | Targets in India | Exchanges, youth bank accounts (used as fraud couriers/mules) | | Legal developments | Bail denied in $240M fraud affecting 80,000 investors, judiciary actively prosecuting suspects | | Regulatory response | Enhanced investigations, increased judiciary involvement, calls for stronger consumer protections |
Fraud-Related Activity Totals Over Rs. 686 Crore
In addition to the cases mentioned, incidents in Delhi, Bengaluru, and a separate case involving Chirag Tomar total over Rs. 686 crore in fraud-related activity. Bengaluru Police uncovered a cryptocurrency theft of Rs. 384 crore at a domestic trading platform, while Rahul Agarwal, an employee of Neblio Technologies Pvt. Ltd., is with the police for interrogation.
The growing threat of crypto-enabled cybercrime is causing law enforcement agencies to intensify efforts to track money and break down these activities. The need for improved cybersecurity in exchanges, better awareness among vulnerable populations, and clearer, stricter crypto regulations in India has never been more urgent.
- Despite the surge in financial crimes related to cryptocurrency this year, some Indian tech companies are still struggling to implement strong cybersecurity measures, making them attractive targets for hackers.
- In the midst of calls for stricter regulations in the crypto sector, general-news outlets are ramping up their coverage of cybersecurity issues, shedding light on the intertwined relationship between finance, technology, crime-and-justice, and cybersecurity in today's digital landscape.
