Varanasi Cyber Crime Police unearthed a sophisticated fake crypto exchange scam involving BSG tokens, exposing a Ponzi-style marketing scheme that defrauded investors of ₹16.5 crore. The scam evolved into a pig butchering fraud model before being busted in a joint police operation led by Inspector Rajkishor Pandey and Constable Chandrashekhar Yadav.
A Crypto Mirage: From MLM Dreams to Digital Disappearance
Operating under the garb of legitimacy, cybercriminals launched fraudulent websites — busdglobal.com and mbsgworld.com — advertising a new digital currency called BSG token. Promoted as a high-return investment under a multi-level marketing (MLM) model, the scam promised early investors hefty bonuses and daily profits to build initial trust and credibility. Victims, lured by exaggerated returns, invested heavily.
However, once the scamsters gathered a substantial sum, they delisted the token from exchanges and went dark — a classic tactic in Ponzi operations before transitioning into what cyber experts call a “pig butchering” phase: where sustained emotional manipulation is used to bleed victims dry before abandoning them entirely.
Tech-Backed Deceit: How the Scam Played Out
The operation involved sophisticated digital tools. Police recovered five smartphones, two laptops, a pen drive, and ₹98,000 in cash — indicating the scam’s high-tech nature. The gang used BSG tokens to simulate authentic crypto market behavior, even listing the fake coin on third-party exchanges to enhance perceived legitimacy.
Under this veil of authenticity, the criminals solicited funds across Uttar Pradesh and beyond. Victims were systematically manipulated, with the initial bonuses creating an illusion of profitability. But as with most Ponzi schemes, later investors were left with nothing.
Inspector Ajay Raj Verma, who led the investigation, emphasized how the fraud exploited a deadly mix of greed, ignorance, and digital sophistication. Constable Chandrashekhar Yadav, whose ground-level surveillance proved instrumental in locating the accused, was also specially commended for his unwavering role.
The Crackdown: Cyber Cops Track, Trap, and Triumph
The bust followed an FIR filed on May 14, 2025, by a victim named Rajkumar from Ramnagar. Acting on this lead, Commissioner Mohit Aggarwal ordered a multi-unit cyber probe under Deputy Commissioner Saravanan T and ACP Vijay Tiwari. Teams were dispatched to Lucknow, Muzaffarnagar, and Sonbhadra districts, tracking down the culprits after days of surveillance.
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The arrested individuals include Rajkumar Maurya, 28, of Budaun, Anuj Sharma, 34, of Unnao, Danish Khan, 24, of Varanasi.
Police confirmed that one of the accused, Shubham alias Vishal Maurya, already had a criminal history and had been previously booked under Section 406 and 420 of IPC and Section 66D of the IT Act.
This case underscores the evolution of cybercrime, where fake crypto exchanges and Pig Butchering scams are merging into dangerous hybrid threats. As law enforcement adapts to digital-age criminality, citizens too must verify investment platforms and report suspected fraud immediately to helpline 1930 or cybercrime.gov.in.