Pune Police have registered a case against 23 individuals accused of cheating at least 22 investors of approximately ₹14.7 crore through a cryptocurrency investment scheme promising unusually high returns.
The case was registered at Bund Garden police station following a complaint from a 25-year-old farmer who alleged that he and his family lost ₹22.7 lakh. Police suspect that nearly 750 people across India could have been affected by the scheme.
How Did the Cryptocurrency Fraud Begin?
The complainant, a resident of Shetphal Gade village in Indapur taluka, was introduced to the investment platform through a friend in August 2023.
He attended a seminar organised at a hotel in Baner, where promoters allegedly promised monthly returns of at least 6%, credited to investors’ accounts on the sixth day of every month. The platform’s founder also assured prospective investors that their money would remain safe.
How Were Investors Persuaded?
According to police, promoters encouraged participants to invest in cryptocurrency schemes offering returns ranging from 15% to 50%, depending on the amount invested. Between December 2024 and February 2025, the complainant transferred ₹22.7 lakh to accounts allegedly operated by the platform.
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Of this amount, ₹5.5 lakh was paid in cash, while the remaining funds were transferred through RTGS. The victim reportedly raised money from his parents and sold agricultural land to finance the investment.
Why Did Investors Become Suspicious?
The complainant alleged that the platform never provided evidence showing where investors’ money had been invested.
Despite repeated requests, customers were unable to verify their investments or independently check the value of their portfolios. The absence of transparent investment records raised concerns about the platform’s operations.
What Happened After the ED Investigation?
In February 2025, the Enforcement Directorate began investigating the platform and froze its business activities, including withdrawals.
Following the action, promoters allegedly encouraged investors to move to other platforms, claiming their money remained secure. Investors were reportedly asked to make fresh deposits to transfer their accounts.
What Action Have Police Taken?
Bund Garden Police registered an FIR against the platform’s founder, promoters and associates under the Bharatiya Nyaya Sanhita and the Maharashtra Protection of Interest of Depositors Act.
The Economic Offences Wing is investigating the allegations. Police said promoters had promised repayments between January and March 2026, but investors did not receive their money.
The420 Insight
The case highlights the risks of cryptocurrency schemes promising unusually high returns without transparent investment records. Investors should verify investment platforms before transferring funds and remain cautious when additional payments are demanded to recover existing investments.
