Binance Cracks Down: How Crypto Sleuths Uncovered a ₹1.75 Crore Cross-Border Scam in India

When crypto meets crime-fighting—Binance just handed scammers an expensive lesson in blockchain's unforgiving transparency.

The sting: Indian authorities, armed with Binance's forensic tools, tracked a sprawling ₹1.75 crore ($210K) fraud across borders. No offshore account hides from immutable ledgers.

Why it burns: Scammers thought mixing crypto and international borders would cloak their tracks. Instead, they got a masterclass in how decentralized networks cut both ways.

The punchline? Another finance 'genius' learns the hard way—crypto doesn't erase stupidity, it immortalizes it on-chain.

Binance and Ahmedabad Cyber Crime Branch recently exposed a major scam network in a joint crackdown. The scam targeted victims across South and Southeast Asia and was worth over $200,000 (₹1.75 crore). The fraud is part of a rising “digital arrest” fraud trend, where fake legal threats are used to target victims. 

“Digital Arrest” Scams on the Rise

One of the cases involved a 90-year-old man from Gujarat, who lost ₹1.25 crore after scammers falsely told him that he was in a legal trouble. In another case, a young jobseeker was tricked into going to Nepal with a fake job offer. He was held captive and was forced to move ₹49 lakh through crypto wallets. 

Scammers are getting smarter — but so are the tools to stop them.

Criminals tried to launder stolen funds through crypto — but the blockchain left a trail.

Binance supported Ahmedabad Police in dismantling a $200K cross-border scam, helping investigators trace… pic.twitter.com/w7i7GcEzd4

Binance Tracks the Trail

With help from Binance and its Financial Intelligence Unit, police used blockchain tracking to trace the money and catch those involved. They tracked wallet activity, spotted suspicious transactions, and helped police make arrests.

A senior officer from Ahmedabad Cyber Crime highlighted that the case shows how advanced cyber scams are becoming and why global cooperation is important.

In a case similar to the 90-year-old Gujarat victim, another man in Ahmedabad was arrested for helping run a ₹22 lakh digital arrest scam. He facilitated the fraud by ‘renting out’ his bank account to MOVE stolen funds, which made it harder to trace the money.

This tactic “renting” bank accounts is common in such scams and helps criminals hide their tracks. As these frauds often cross borders and move money quickly. In such cases, fast action and strong coordination between police and crypto platforms is are key to stopping them.

In these digital arrest scams, fraudsters often pose as  police or government officials to scare victims into sending money. The funds are often moved through crypto wallets or fake bank accounts to hide their source. This is a growing trend and serves as a reminder to stay alert in the hyper-connected world.

Every Crypto Move Leaves a Trace

A regional lead at Binance South Asia official noted that every crypto transaction leaves a trace. He adds that this case proves as an example that when used the right way, blockchain can actually help fight crime. The investigation is still ongoing and more arrests are expected as authorities uncover more of the global scam network.

Binance’s FIU works closely with the law enforcement by analyzing suspicious transactions and sharing quick, useful insights. In 2024 alone, Binance responded to over 65,000 law enforcement requests around the world.