Crypto Scams in India 2026: Complete Research Report
Key Takeaways
- Indians have lost over ₹72,000 crore to cryptocurrency scams since 2015, with GainBitcoin (₹6,600 Cr) and Bitconnect (₹41,000 Cr) being the largest
- Cyber fraud losses surged 206% in 2024 to ₹22,845 crore, with 36.4 lakh complaints registered on the National Cybercrime Reporting Portal
- The WazirX hack of July 2024 remains India’s largest crypto exchange hack at $234.9 million (₹2,000 Cr), attributed to North Korea’s Lazarus Group
- Government agencies have recovered ₹5,489 crore through the Cyber Fraud Reporting System, with recovery rates improving from 10% to 24%
- 46% of crypto scams targeting Indians originate from Southeast Asia, particularly Cambodia, Myanmar, and the Philippines
What You Need to Know
India has emerged as one of the most targeted nations for cryptocurrency fraud, with cumulative losses exceeding ₹72,000 crore since 2015. The country’s rapid adoption of digital currencies, combined with limited regulatory oversight and low financial literacy about crypto risks, has created fertile ground for scammers.
Major scams like GainBitcoin and Bitconnect operated for years before authorities could intervene, affecting lakhs of investors. The GainBitcoin scheme alone collected between 385,000 to 600,000 Bitcoin, with its mastermind Amit Bhardwaj dying before facing trial. More recently, the 2024 WazirX hack exposed vulnerabilities in even established exchanges, resulting in a loss of $234.9 million.
The government has responded with the National Cybercrime Reporting Portal and dedicated helpline 1930, successfully blocking ₹5,489 crore in fraudulent transactions. The CBI and ED have conducted multiple nationwide raids, with the ED seizing crypto assets worth billions. However, with only 24% recovery rate and investigations stretching across years, most victims remain without restitution.
Experts recommend Indians use only registered exchanges like Bitcoin and Ethereum trading on regulated platforms, avoid schemes promising fixed monthly returns, and report suspicious activity immediately to the cybercrime portal.
Overview
This comprehensive research examines cryptocurrency scams in India from 2015 to 2025, covering the biggest frauds, total losses, investigations by central agencies, money recovered, and protective measures for investors. India ranks among the top 5 countries globally for crypto scam losses, with the problem intensifying as crypto adoption grows.
How Much Money Have Indians Lost to Crypto Scams?
The total documented losses from cryptocurrency-related fraud in India exceed ₹72,000 crore ($8.6 billion), making it one of the largest financial fraud categories in the country.
| Year/Period | Losses (₹ Cr) | Complaints Filed | Key Incidents |
|---|---|---|---|
| 2015-2018 | ₹47,600+ Cr | 8,000+ | GainBitcoin, Bitconnect peak operations |
| 2019-2021 | ₹5,000+ Cr | 1,00,000+ | Morris Coin, ATC Coin scams |
| 2022 | ₹2,500+ Cr | 2,50,000+ | Nagpur scam, multiple Ponzi schemes |
| 2023 | ₹7,465 Cr | 16.2 Lakh | Crypto Ponzi schemes, phishing attacks |
| 2024 | ₹22,845 Cr | 36.4 Lakh | WazirX hack, HPZ Token, OctaFX scam |
| 2025 (Jan-Jun) | ₹1,200+ Cr | 12.5 Lakh | Delhi cyber fraud surge, digital arrests |
| Total | ₹72,000+ Cr | 53.9 Lakh+ | Cumulative documented losses |
2025 Projection: Experts estimate India’s cyber fraud losses could surpass ₹1.2 lakh crore in 2025, equivalent to 0.7% of GDP.
What Are the Biggest Crypto Scams in India?
India has witnessed several major cryptocurrency scams, with some running for nearly a decade before being exposed. Here are the most significant cases:
Largest Crypto Scams by Estimated Losses
1. GainBitcoin Scam (₹6,600-90,000 Crore)
The largest cryptocurrency scam in India, GainBitcoin was a Ponzi scheme launched in 2015 by Amit Bhardwaj and his brother Ajay Bhardwaj. Investors were promised 10% monthly returns on Bitcoin investments through “cloud mining” contracts.
- Estimated collection: 385,000 to 600,000 Bitcoin
- Victims: Over 1 lakh investors across India
- Modus operandi: Multi-level marketing with promised 10% monthly returns
- Status: CBI raided 60 locations in February 2025; Amit Bhardwaj died in January 2022 before facing trial
2. Bitconnect Scam (₹41,000 Crore in India)
A global Ponzi scheme with significant operations in India. Divyesh Darji, a Gujarat-based individual, headed Asia operations and allegedly received a 10% cut (₹4,100 Cr) of the Indian proceeds.
- Global losses: $2.4 billion+
- India-specific losses: ₹41,000 Crore
- Related scams: Darji also ran Dekado Coin and Regal Coin copycat schemes
- Status: ED seized $190-198 million in crypto assets tied to Bitconnect
3. WazirX Hack (₹2,000 Crore / $234.9 Million)
On July 18, 2024, India’s largest cryptocurrency exchange was hacked by North Korea’s Lazarus Group, resulting in the theft of $234.9 million in crypto assets.
- Assets stolen: $234.9 million in various cryptocurrencies
- Customer impact: 43% of customer funds reported lost
- Attribution: Linked to North Korean state-sponsored hackers (Lazarus Group)
- Status: One suspect arrested; exchange operations affected
4. Morris Coin Scam (₹1,200 Crore)
The Morris Coin scam collected ₹15,000 each from over 11 lakh people across India for a non-existent cryptocurrency, promising daily returns and referral benefits.
- Mastermind: Nishad K from Kerala
- Companies involved: Long Reach Global, Long Reach Technologies, Morris Trading Solutions
- Status: ED seized assets worth ₹14 crore; prime accused arrested
5. Other Notable Scams
| Scam Name | Estimated Loss | Year | Status |
|---|---|---|---|
| HPZ Token Scam | ₹615 Cr | 2024 | ED seized assets |
| OctaFX Forex Scam | ₹2,385 Cr | 2024 | Crypto seized by ED |
| 4th Bloc Consultants | Unknown | 2015-2024 | ED raids 21 locations |
| Goldcoat Solar Scam | ₹1 Lakh USDT | 2024 | Binance-Delhi Police bust |
| Nagpur Crypto Scam | ₹40 Cr | 2022 | 11 arrested |
| Andhra Pradesh Scam | ₹23 Cr | 2021-2024 | Under investigation |
Who Is Investigating Crypto Scams in India?
Multiple central and state agencies are involved in investigating cryptocurrency-related fraud in India:
Central Bureau of Investigation (CBI)
- GainBitcoin Investigation: Conducted raids at 60 locations across Delhi NCR, Pune, Chandigarh, Nanded, Kolhapur, and Bengaluru in February 2025
- Operation Chakra-V: Multi-agency campaign targeting transnational cyber fraud syndicates, involving coordination with Interpol and FBI
- Crypto seizures: Seized $2.75 million in cryptocurrency during GainBitcoin raids
- Geneva Mission fraud: Investigating ₹2 crore fraud linked to crypto-gambling at India’s Geneva diplomatic mission
Enforcement Directorate (ED)
- Bitconnect seizures: Attached assets worth $190-198 million in crypto
- Morris Coin: Seized ₹14 crore in assets, arrested prime accused
- HPZ Token: Total seizures of ₹615.90 crore
- OctaFX Scam: Seized ₹2,385 crore in crypto assets
- International Hawala: Unearthed ₹4,000 crore racket; attached ₹47.6 crore
- FBI-ED Joint Operation: Seized ₹1,500 crore in digital assets linked to a ₹3,000 crore fraud case
State Police Cyber Cells
- Delhi Police: Partnered with Binance to bust Goldcoat Solar scam; seized 1 lakh USDT
- Surat CID: Leading Bitconnect investigation in India
- Bengaluru Police: Investigated Morris Coin and related entities
- Odisha CID: Arrested 5, recovered ₹6.16 crore in a 2024 crypto scam
Indian Cyber Crime Coordination Centre (I4C)
- Operates the National Cybercrime Reporting Portal (NCRP)
- Runs the 1930 helpline for immediate fraud reporting
- Coordinates with state cyber cells and international agencies
- Blocked 3,000+ URLs and 595 apps under Section 69A of IT Act
- Suspended 5.3 lakh SIM cards and 80,848 IMEI numbers since July 2023
How Much Crypto Scam Money Has Been Recovered?
While losses far exceed recoveries, government agencies have made significant strides in freezing and recovering stolen funds:
Major Asset Seizures and Recoveries
| Case | Amount Seized/Recovered | Agency | Year |
|---|---|---|---|
| Bitconnect | $190-198 Million | ED | 2024 |
| OctaFX Scam | ₹2,385 Crore | ED | 2024 |
| FBI-ED Joint Op | ₹1,500 Crore | ED + FBI | 2024 |
| HPZ Token | ₹615.90 Crore | ED | 2024 |
| Chirag Tomar Phishing | ₹42.8 Crore | ED | 2024 |
| International Hawala | ₹47.6 Crore | ED | 2024 |
| GainBitcoin | $2.75 Million | CBI | 2025 |
| Morris Coin | ₹14 Crore | ED | 2024 |
CoinDCX Partnership: The ED has assigned CoinDCX to manage seized crypto assets, providing expertise in cryptocurrency custody and compliance.
Where Do Most Crypto Scams Targeting Indians Originate?
Data from the Indian Cyber Crime Coordination Centre (I4C) reveals that a significant portion of crypto scams targeting Indians originate from abroad:
Origin of Crypto Scams Targeting India
The Rajya Sabha Standing Committee on Home Affairs’ 254th report mentioned cryptocurrency 15 times—all in the context of scams, money laundering, and exploitation by foreign criminal gangs.
How Can You Protect Yourself from Crypto Scams?
With 119 million Indians now owning cryptocurrency, understanding how to identify and avoid scams is crucial:
Red Flags to Watch For
- Guaranteed returns: Promises of fixed monthly returns (10% or higher) are almost always fraudulent
- MLM structures: Multi-level marketing or referral-based crypto schemes
- Unregistered tokens: New cryptocurrencies not listed on major exchanges
- Pressure tactics: Urgency to invest or “limited time” offers
- Fake celebrity endorsements: Claims of support from celebrities or business leaders
- Too-good-to-be-true returns: Annual returns exceeding 100% with no risk disclosure
Safe Investing Practices
- Trade only on registered exchanges that comply with Indian regulations
- Stick to established cryptocurrencies like Bitcoin and Ethereum
- Use crypto converters from trusted sources for price verification
- Enable two-factor authentication on all exchange accounts
- Never share private keys or seed phrases with anyone
- Verify URLs carefully—phishing sites often use similar domain names
If You’ve Been Scammed
- Report immediately: Call the cybercrime helpline 1930
- File online complaint: Visit cybercrime.gov.in
- Preserve evidence: Screenshot all communications, transactions, and wallet addresses
- Contact your bank: Freeze linked accounts to prevent further withdrawals
- File FIR: Lodge a First Information Report at your local police station
How Has Crypto Fraud Evolved in India Year by Year?
| Year | Total Complaints | Losses (₹ Cr) | YoY Change | Major Trend |
|---|---|---|---|---|
| 2019 | ~50,000 | ₹500+ | Baseline | Portal launched (Aug 2019) |
| 2020 | ~2,50,000 | ₹1,500+ | +400% | COVID-era crypto boom |
| 2021 | 4,52,000 | ₹3,000+ | +80% | Bull market scams surge |
| 2022 | 9,66,000 | ₹4,500+ | +114% | Crypto winter fraud |
| 2023 | 16,20,000 | ₹7,465 | +67% | Investment scams rise |
| 2024 | 36,40,000 | ₹22,845 | +206% | WazirX hack, AI-powered scams |
| 2025 (H1) | 12,50,000 | ₹8,000+ (est.) | Tracking | Digital arrest scams |
What Is the Government Doing to Combat Crypto Fraud?
Regulatory Measures
- 30% Tax on VDAs: Introduced in Budget 2022, discourages anonymous transactions
- 1% TDS: Creates a trail for all crypto transactions above ₹10,000
- 44,000 Tax Notices: IT department issued notices for undisclosed crypto income
- PMLA Coverage: Crypto exchanges now under Prevention of Money Laundering Act
Enforcement Actions
- Mule accounts frozen: 3.25 lakh accounts frozen to disrupt money laundering
- URLs blocked: 3,000+ fraudulent websites taken down under IT Act
- Apps removed: 595 scam apps delisted from app stores
- SIM cards suspended: 5.3 lakh suspicious SIMs cancelled
- IMEI blocking: 80,848 device identifiers blacklisted
Citizen Protection Initiatives
- 1930 Helpline: 24/7 dedicated cybercrime helpline
- NCRP Portal: Online platform for filing complaints at cybercrime.gov.in
- CFCFRMS: Citizen Financial Cyber Fraud Reporting and Management System for faster fund freezing
- Awareness campaigns: Regular advisories on emerging scam tactics
Frequently Asked Questions
What is the biggest crypto scam in India?
The biggest crypto scam in India is Bitconnect, with estimated losses of ₹41,000 crore in India alone. The second-largest is GainBitcoin, with losses ranging from ₹6,600 crore to ₹90,000 crore depending on Bitcoin valuations. GainBitcoin collected an estimated 385,000 to 600,000 Bitcoin from over 1 lakh investors before collapsing in 2018.
How much money have Indians lost to crypto scams?
Indians have lost over ₹72,000 crore (approximately $8.6 billion) to cryptocurrency scams since 2015. In 2024 alone, cyber fraud losses reached ₹22,845 crore—a 206% increase from 2023. Experts project losses could exceed ₹1.2 lakh crore in 2025.
What happened in the WazirX hack?
On July 18, 2024, WazirX, India’s largest cryptocurrency exchange, was hacked by North Korea’s Lazarus Group. Hackers stole $234.9 million (approximately ₹2,000 crore) in crypto assets, representing 43% of customer funds. The attack exploited vulnerabilities in the exchange’s multi-signature wallet system. One suspect has been arrested, and investigations continue.
How can I report a crypto scam in India?
To report a crypto scam in India: 1) Call the cybercrime helpline 1930 immediately for faster fund freezing. 2) File an online complaint at cybercrime.gov.in. 3) Lodge an FIR at your local police station with all evidence including screenshots, wallet addresses, and transaction records. Quick reporting increases the chances of recovering funds.
What is the recovery rate for crypto scam money in India?
The recovery rate for crypto scam money in India improved from 10% in 2024 to 24% in 2025. The government’s Cyber Fraud Reporting and Management System has blocked or retrieved ₹5,489 crore across 17.82 lakh complaints. Overall, assets worth more than ₹32,000 crore have been returned to rightful claimants through various restitution efforts.
Which agency investigates crypto scams in India?
Multiple agencies investigate crypto scams in India. The Enforcement Directorate (ED) handles money laundering aspects and has seized billions in crypto assets. The Central Bureau of Investigation (CBI) investigates major cases like GainBitcoin. State police cyber cells handle local complaints. The Indian Cyber Crime Coordination Centre (I4C) coordinates nationwide efforts and operates the NCRP portal.
Is investing in Bitcoin safe in India?
Investing in Bitcoin through registered and regulated exchanges is relatively safe, but requires caution. Use only exchanges compliant with Indian regulations, enable two-factor authentication, never share private keys, and avoid schemes promising guaranteed returns. While crypto is legal in India, it’s taxed at 30% on gains with 1% TDS on transactions. Avoid unregistered platforms and new “coins” promising unrealistic returns.
Methodology
Data Sources: National Cybercrime Reporting Portal (NCRP), Enforcement Directorate press releases, CBI official statements, Inc42, Business Standard, CryptoTimes, Rajya Sabha Standing Committee Report (254th), I4C Statistics
Time Period: 2015 to December 2025
Scope: All documented cryptocurrency-related fraud cases in India including Ponzi schemes, exchange hacks, phishing attacks, and investment scams
Last Updated: December 30, 2025