In a landmark development for cybercrime jurisprudence in Rajasthan, a Jaipur court has ordered the direct return of seized cryptocurrency to a cyber fraud victim, recognising digital assets as recoverable property under criminal law. The ruling marks the first instance in the state where a court has authorised the transfer of recovered crypto assets in their original digital form back to the victim, rather than converting them into cash.
The order follows a detailed investigation by the Jaipur cybercrime police, which successfully traced and seized cryptocurrency worth nearly ₹9 lakh that had been siphoned off in an online crypto fraud. With judicial approval now in place, the recovered digital assets will be transferred directly to the victim’s crypto wallet.
Fraud Executed by Posing as Overseas Crypto Traders
According to police officials, the case relates to an online cryptocurrency investment scam in which the accused contacted the victim through WhatsApp, posing as legally authorised crypto traders operating out of Dubai. To establish credibility, the fraudsters used a fake SIM card and projected an international identity.
Investigators said the accused first conducted a small cryptocurrency transfer to the victim to build trust. Once confidence was established, the victim was persuaded to transfer his entire crypto holdings to a shared wallet, purportedly for secure trading and verification purposes.
Shortly after the transfer, the digital assets were routed through multiple wallets, and the accused stopped responding. Realising he had been cheated, the victim approached the cybercrime police and lodged a formal complaint.
SIT Traces Complete Digital Transaction Chain
Given the seriousness of the offence, the Jaipur cybercrime police constituted a Special Investigation Team (SIT). Using advanced technical tools and cyber forensic techniques, investigators traced the complete digital trail of the cryptocurrency transactions across multiple wallets.
During the probe, police recovered 9,991 USDT, valued at approximately ₹8.96 lakh, from a concealed Trust Wallet found on the mobile phones of the accused. During interrogation, the accused attempted to mislead investigators by claiming they did not possess the private keys required to access the wallet.
However, cyber forensic experts were able to successfully retrieve the private key through technical analysis, enabling full recovery and seizure of the digital assets.
Two Accused Arrested from Dausa
Police arrested Murari Lal Saini and Ravi Kumar Meena, both residents of the Lalsot area in Dausa district. Officials said the duo combined technical knowledge with psychological manipulation and inducement, specifically targeting individuals who were relatively new to cryptocurrency trading.
Investigators added that the accused exploited the victim’s limited familiarity with wallet security and third-party verification practices to gain control over his digital assets.
Court Recognises Crypto as Recoverable Property
Commenting on the development, Abhijit Singh, Deputy Commissioner of Police (Crime), said the court’s order represents a major step forward in cybercrime enforcement.
He noted that the ruling clearly establishes that cryptocurrency qualifies as recoverable property under criminal law. Until now, seized digital assets in many cases have remained frozen for long periods or have been converted into cash equivalents. The Jaipur court’s directive now provides a clear legal pathway for returning digital assets directly to victims.
Victim Was Trading Legally on Binance
Police said the victim had initially purchased cryptocurrency worth around ₹11 lakh after completing KYC formalities on Binance and had begun trading through legitimate channels. The fraud occurred when the victim relied on unsolicited online advice and transferred his assets to a third-party wallet without independent verification.
Significant Precedent for India
Cybercrime experts say the case sets an important judicial and investigative precedent, not only for Rajasthan but for India as a whole. The successful recovery demonstrates that cryptocurrency-related crimes are traceable and reversible with timely reporting, technical expertise, and judicial clarity.
The Jaipur court’s decision signals a broader shift in how digital assets are viewed within the legal system, reinforcing the principle that cryptocurrency is no longer beyond the reach of law enforcement or the courts.
As cyber-enabled financial crimes continue to evolve, the ruling is expected to influence future investigations and judicial orders across the country, offering greater hope of restitution to victims of digital fraud.
