Engineer Loses $130k in Crypto Scam as Police Sound Alarm on Fake Investment Schemes

Law enforcement issues a stark warning as sophisticated crypto scams drain six-figure sums from unsuspecting investors.

How the Scam Works

Fraudsters deploy polished platforms and professional-looking documentation—mimicking legitimate exchanges and investment funds. They promise guaranteed returns, exclusive "pre-IPO" token access, or algorithmic trading profits. The initial small withdrawals work flawlessly, building trust before the victim commits a major sum. Then, the platform vanishes—along with the funds.

The $130,000 Reality Check

The case of an engineer losing $130,000 underscores the scam's effectiveness. It's not just naive newcomers; tech-savvy professionals are getting caught. The psychological playbook is consistent: exploit FOMO (Fear Of Missing Out), use social proof with fake testimonials, and apply pressure with "limited-time" offers.

Self-Custody is Non-Negotiable

The golden rule remains: not your keys, not your crypto. Any platform demanding full custody of assets for "managed returns" should trigger immediate skepticism. Legitimate DeFi protocols and staking services operate with transparent, on-chain verifiability—not promises in a PDF brochure.

Due Diligence Over Dreams of Lambos

Verifying team credentials, auditing smart contract addresses, and checking regulatory registrations (where they exist) are basic steps. If an offer seems too good to be true, it's probably a scam—a timeless truth that somehow gets discarded during bull markets when greed dresses up as genius.

The industry's growth attracts both builders and predators. While regulators scramble to catch up, the ultimate responsibility for asset security falls on the individual. Remember, in crypto, you're often your own chief compliance officer—and sometimes, your own fraud department. The market doesn't care if you lost your savings to a scam; it'll keep trending up without you.

Indian engineer loses $130k to scammers

The victim claimed that the members of the group were directed to go to a domain named www(dot)ggtkss(dot)cc to download the application. He noted that the administrator claimed that once they downloaded the app, they WOULD be able to gain access to block deals and high-value IPO allotments unavailable to regular investors.

The Indian police claimed the victim deposited Rs. 1 lakh and was allowed to withdraw Rs. 5,000 to gain his trust.

According to the police statement, over the next few weeks, between November and early December, he was persuaded to deposit higher funds.

Heeding their counsel, he put larger sums to subscribe to the Capital Small Finance Bank IPO and to cover a share buyback. During the period, the police claimed that the victim made deposits of about Rs. 1.2 crore through several bank accounts and UPI.

However, issues started when he tried to withdraw some of his balance. The scammers claimed he would have to pay a 20% commission before he was allowed to make any withdrawals. When they discovered that he was not ready to pay, they froze his account.

Realizing he had been scammed, the Indian engineer approached the police station, reporting the crime to the Cyberabad cybercrime police. The police subsequently registered his complaint and kick-started investigations.

Police warn residents amid rise in crypto-related crimes

Crypto-related crimes in India have been on the rise since the start of the year, with the police proactively working to curb the menace.

In a similar issue, the Indian police claimed that an artificial intelligence scientist was scammed in a crypto investment scam that was introduced to him on a matrimony website. He claimed that he started chatting with a woman he met on the website, who subsequently introduced him to a platform where he could make money off investments.

Over the next three months, the victim claimed he transferred USDT across 14 transactions to the platform.

Investigators attached to the Indian police claimed that some of the transactions were made to an account registered under Shankar Sahu, while more than Rs. 13 lakh were routed through an entity called RR Physiotherapy. Indian police say the remaining amount was converted into different digital assets and moved to wallets in the United Kingdom and Malaysia.

Meanwhile, the Indian police have urged the wider population to be alert and watch out for signs that point to an investment being a scam. They warned that scams are presently at an all-time high in the country, a development that has become rampant during the run to the festive periods.

They urged residents to seek advice from experienced and trustworthy financial experts if they want to make investments. They also urged them to report swiftly once they feel that they have become victims of a scam.

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