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A herbal tea trader from Kanpur, Uttar Pradesh, allegedly lost ₹43.73 lakh after cybercriminals befriended him on Facebook and lured him into a cryptocurrency trading scheme promising high returns. The fraudsters later demanded another ₹27.79 lakh as income tax to allow him to withdraw his supposed profits.
How Did the Fraud Begin?
The victim, Shivraj Nishad, a resident of Sheikhpur in Maharajpur, runs a herbal tea business.
On July 14, he connected with a woman identifying herself as Sandhya Arora through Facebook. The woman discussed his business and subsequently obtained his WhatsApp number to continue their conversations.
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According to the complaint, she gradually introduced him to cryptocurrency trading and encouraged him to explore investment opportunities.
How Was He Lured Into Trading?
On July 27, the woman allegedly added Nishad to a cryptocurrency trading group on WhatsApp. The group included three Malaysian and three Indian phone numbers. Members promoted cryptocurrency investments and presented opportunities to earn attractive returns through trading.
Initially, Nishad was persuaded to invest ₹10,000. He was subsequently shown a profit of ₹2,668, creating the impression that the investment scheme was generating returns.
Encouraged by the displayed profits, he invested another ₹30,000.
What Was the Withdrawal Condition?
The accused allegedly informed Nishad that he would have to pay a 30% commission on his trading profits. They initially created a three-day trading arrangement, which was later extended to seven days.
The fraudsters claimed that withdrawals would be permitted only after completing seven days of trading and paying the commission on daily profits.
These conditions were presented as part of the cryptocurrency trading process, keeping the victim engaged in the investment scheme.
How Was ₹43.73 Lakh Taken?
According to Nishad’s complaint, the fraudsters persuaded him to make repeated payments into different bank accounts.
Over the course of the scheme, he allegedly transferred ₹43.73 lakh into 33 separate bank accounts. The money was deposited under the belief that the investments and displayed trading profits could eventually be withdrawn.
However, when Nishad attempted to withdraw his money, the accused allegedly introduced additional payment requirements.
Why Was Another ₹27.79 Lakh Demanded?
The fraudsters allegedly demanded an additional ₹27.79 lakh in the name of income tax before allowing Nishad to withdraw his investment returns. The demand came after he had already transferred ₹43.73 lakh into the accounts provided by the accused.
As the demands for further payments continued, Nishad became suspicious and realised that he had been cheated. He subsequently approached the cyber police and lodged a complaint.
What Action Have Police Taken?
Following the complaint, police registered a report at the Cybercrime Police Station in Kanpur and initiated an investigation. Investigators are examining the alleged cryptocurrency investment fraud and the transfer of funds into 33 different bank accounts.
The case highlights how fraudsters use social media friendships, WhatsApp investment groups and fabricated trading profits to gain victims’ confidence before demanding further payments under the pretext of taxes or withdrawal charges.
