Indian Entrepreneur Loses $250K in Crypto Scam

Indian Entrepreneur Loses $250K in Crypto Scam

An Indian businessman lost $242,000 in one of the biggest cyber frauds in Telangana, falling victim to a fraudulent scheme promising high returns on fake crypto trading platforms, which he invested in after downloading the Binance app and sending his cryptocurrency to the fraudsters.

Would you danger sliding victim to cryptocurrency fraud by sending your digital assets to a trader you do not know? 1 Indian businessman did, and now he is out the equivalent of a quarter of a Million dollars. The Times of India calls it one of the largest cyber frauds in Telangana, a state home to 38 Million people.

An Indian businessman lost two crore ( approximately $242,000) in just two months owing to a fraudulent scheme on social media. Reports by a Times of India report on Thursday, the scammers lured him with promises of high returns and convinced him to invest in their fake cryptocurrency trading platforms. The Times of India identified the victim only by a pseudonym.

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The victim came across an ad for Bitcoin (BTC) trading while browsing Facebook on March 6, the newspaper informed. The link redirected him to a WhatsApp chat page with a Bitcoin (BTC) website link and instructions to register.

Victim Used Binance Crypto exchange, Then Handed Assets Over

Nonetheless, in a strange twist, the victim states he downloaded the Binance Crypto exchange application to buy USDT, a crypto stablecoin. Only then did he send the digital currency to the fraudsters. 

This implies the individual navigated the interface of the world’s most trending cryptocurrency exchanges, which can be notoriously complex for first-time users, and only then handed his assets over.

The unnamed individual reportedly had access to a “virtual wallet” where he could see his financing growing exponentially. Nonetheless, the fraudsters insisted on more assets for full withdrawal. Then, when he refused, they shut down the virtual wallet and fake website. The businessman had reportedly taken out loans from banks, friends, and business associates to finance his investments. He had hoped to make 10 crore ($123 million) quickly.

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The Times of India has stated the felony as one of the largest cyber frauds to hit the city of Telangana. That’s saying something, in a state with 38 Million residents.

A Similar Cryptocurrency Fraud Took $1.5 Million

What is remarkable about the felony is how avoidable it was. Numerous crimes in cryptocurrency are the result of cryptocurrency illiteracy. Despite the fact, this does not seem to be the case in this instance. 

Reports by, only 9 percent of Americans achieved a passing grade on its Cryptocurrency Literacy Test. This an astounding figure when you consider that most arriving at that test must already be familiar with cryptocurrency. Despite the fact, India sits near the top (4th) in terms of grassroots cryptocurrency adoption, so the figure would conceivably be higher.

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Nonetheless, a recent World Bank report has flagged that 7 countries, including India, house half of the world’s 1.4 Billion adults without access to formal banking. So cryptocurrency fraud isn’t the only concern. Banks around the globe are likewise pushing increasingly digital services onto their customers. It raises the question: if an educated businessman can fall for a WhatsApp-based scam, how safe is everyone else?

It isn’t known whether the victim was offered a brokerage service, where cryptocurrency is purchased and invested on an individual’s behalf.

Another individual informed losing 12.3 lahk ($1.5 million) in a similar fraud the day before the 1st victim approached the police. “We have written to the cryptocurrency exchange company to get details. On the other hand, it is close to impossible to identify the receiver and recover the amount lost in financing frauds,” a police official informed The Times of India.

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