- Indian authorities have dismantled a cryptocurrency scam that defrauded over 2,000 investors
- The scam resulted in losses between ₹10 crore and ₹20 crore (approximately $1.2 million to $2.4 million)
- Three individuals have been arrested in connection with the fraudulent scheme, while the alleged mastermind remains at large
Indian law enforcement agencies have uncovered a large-scale cryptocurrency fraud that deceived over 2,000 investors, leading to financial losses estimated between ₹10 crore and ₹20 crore (approximately $1.2 million to $2.4 million). Authorities have arrested three individuals linked to the scam, while the primary orchestrator is still at large. The fraudulent operation involved converting the swindled funds into the Tether (USDT) stablecoin and channeling them through cryptocurrency exchanges such as Binance to overseas accounts.
Unraveling the RSN Crypto Scam
The scam, operating under the guise of “RSN crypto,” targeted residents in the northeastern Indian state of Assam and the neighboring state of Meghalaya. Victims were enticed with promises of substantial returns through a crypto game called RSN. Each investor was required to invest a minimum of ₹50,000 (approximately $610), with total misappropriated funds ranging between ₹10 crore and ₹20 crore. citeturn0search3
In a late-night operation Sunday, Assam police apprehended three individuals identified as Asadul Islam, Hashanur Zaman, and Kobad Ali Mollah, all accused of operating the fraudulent scheme. The alleged mastermind, Hekmot Ali Sarkar, remains at large, with authorities actively pursuing his arrest.
The suspects reportedly used online payment platforms like Paytm and PhonePe to collect funds, which were then converted into USDT on cryptocurrency exchanges before being transferred to international accounts.
Links to International Entities
Investigations have uncovered that the RSN crypto website was hosted on an Amazon server and had alleged ties to entities in China. This international connection has prompted the involvement of the Indian Cyber Crime Coordination Centre (I4C) to track the operation. The arrested suspects admitted to manipulating cryptocurrency values and coercing victims into investing. Authorities are expanding their investigation to identify additional suspects and financial networks involved.
This incident is part of a broader trend of increasing cryptocurrency scams in India. Earlier this year, authorities busted the Datameer crypto trading app scam, which swindled at least 700 investors out of ₹10 million (approximately $114,000). In another major case, the Enforcement Directorate charged 299 Chinese entities last year for operating the HPZ Token fraud, a crypto mining scam. Despite these challenges, India’s crypto market continues to grow, with trading volumes reaching nearly $2 billion in late 2024. Experts project that the crypto market in India could surpass $15 billion by 2035.
Authorities are urging investors to exercise caution and conduct thorough research before investing in cryptocurrency schemes, especially those promising high returns with minimal risk. The Assam police are continuing their investigation to apprehend the remaining suspects and recover the stolen funds.
