A 50-year-old doctor from Bengaluru Rural district allegedly lost Rs 4.47 crore in a cryptocurrency investment scam after fraudsters promised high returns and displayed fictitious profits of nearly Rs 14 crore on a fake trading platform. When he attempted to withdraw the money, additional payments were allegedly demanded as taxes, processing charges and other fees.
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How Did the Scam Begin?
The doctor, a surgeon working at a private hospital, was contacted on WhatsApp during the first half of August by a woman who introduced herself as an investment adviser.
She allegedly explained cryptocurrency trading and claimed that substantial profits could be earned within a short period. She later shared the contact details of another person who was presented as a trading analyst.
The doctor contacted the person and was allegedly offered a cryptocurrency investment arrangement. The accused reportedly promised him a 30 per cent commission from the profits, making the proposal appear more attractive.
WhatsApp Group Used to Show Profits
The fraudsters allegedly added the doctor to a WhatsApp group called “CoinTrs Transaction”, where members posted screenshots showing large profits from cryptocurrency trades.
The group activity apparently created the impression that other investors were successfully earning money through the platform.
The doctor was subsequently sent a link to register on a purported CoinTrs.com trading platform. He was also communicating with the accused through Telegram.
How Did Rs 4.47 Crore Get Transferred?
The doctor initially invested a relatively small amount. As the portal displayed lucrative returns in his account, he was persuaded to transfer larger sums.
In total, he transferred Rs 4,47,82,080. Between August 23 and September 3, the money was transferred from his bank account to multiple accounts linked to different entities.
The accounts were allegedly associated with entities including Chesain Event Pvt Ltd, MS Subh Yatri Tour and Travels Pvt Ltd, Online Saree Hub, Sipvera Services, Praveen Silk Sarees, Sky Line Relty and Paynex.
Fake Platform Showed Nearly Rs 14 Crore Profit
When the doctor attempted to withdraw the purported profits, the withdrawal was not processed. The accused allegedly told him that a “Security Channel” had to be cleared before the money could be released.
The platform subsequently displayed a purported profit of $14,77,129, equivalent to around Rs 14 crore.
Further demands for money were allegedly made on the pretext of taxes, processing charges and other fees. The inability to withdraw the funds and the additional demands led the doctor to realise that the trading platform and displayed profits were part of an elaborate fraud.
Doctor Approaches Cybercrime Police
The doctor approached the cybercrime helpline 1930 and the Central Cyber Crime police, seeking action against those allegedly involved.
He also sought the freezing of bank accounts used to receive the transferred money in an effort to recover the funds.
Police registered a case under the Information Technology Act and Section 318 of the Bharatiya Nyaya Sanhita. Investigators are examining the transactions and accounts allegedly used in the fraud.
How Do Such Investment Scams Work?
Such scams often begin with unsolicited messages promising unusually high investment returns. Victims may initially be shown small or apparently successful trades before being encouraged to invest larger amounts.
Fake trading portals can display inflated profits that exist only on the screen. When victims attempt to withdraw their supposed earnings, fraudsters may demand additional payments under the guise of taxes, verification charges, security deposits or processing fees.
People should independently verify cryptocurrency platforms before transferring money and avoid relying on investment groups, profit screenshots or unsolicited recommendations received through WhatsApp or Telegram. Suspected financial cyber fraud should be reported immediately through the 1930 helpline.
How Can Investors Stay Safe?
People should independently verify any cryptocurrency or investment platform before transferring money and avoid trusting unsolicited offers, WhatsApp or Telegram investment groups, or screenshots claiming unusually high profits. If a suspected financial cyber fraud occurs, it should be reported immediately through the 1930 cybercrime helpline.
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