India’s IT Department Exposes Massive $19M Crypto Scam Preying on Rural Farmers

Another day, another crypto scandal—but this one hits different.

Agricultural communities targeted by sophisticated fraud scheme

India's tax authorities just ripped the lid off a $19 million cryptocurrency operation that specifically targeted farmers. The scheme promised blockchain-powered agricultural returns but delivered empty digital wallets instead.

Rural investors lured by 'guaranteed' farming token returns

The fraudsters pitched farmers on crypto investments tied to agricultural yields—playing on their expertise while exploiting financial literacy gaps. They used familiar farming terminology to mask what was essentially a Ponzi scheme dressed in decentralized clothing.

Regulatory gaps create hunting ground for digital predators

Without clear crypto frameworks, rural areas become perfect targets for these operations. The scammers operated for months before authorities caught the digital paper trail—proving that when it comes to separating farmers from their money, some will still use high-tech shovels.

Maybe next time they'll stick to traditional bank fees—at least those come with deposit insurance.

From farms to fraud 

The investigators carried out a probe in more than five districts in Andhra Pradesh and Telangana. Sources also confirmed that most individuals linked to these trades are from lower socioeconomic strata, having no financial literacy, let alone knowledge of cryptocurrencies. 

S Narasimha, a farmer whose identity was stolen for the purchase of a cryptocurrency worth INR 9.5 crore, claimed, “We don’t even know what Bitcoin is.” In another case, Shiva Pamula, a food delivery partner being shown to carry out massive volume trades, said he didn’t have an idea about crypto or the trading. 

Larger identity theft suspected 

The IT officials have cautioned that these verified nine cases may represent only a small fraction of a far larger fraudulent scheme. The racket appears to operate via the theft or falsification of Permanent Account Number (PAN) cards, an identification card issued by the IT department, and other personal details of ordinary citizens. All individuals whose names were used reportedly were non-filers of income tax returns, suggesting the misuse was designed to avoid detection through standard tax filings. The case raises serious concerns about fraud, cybersecurity, and regulatory oversight in India’s rapidly growing crypto sector. 

Crypto crimes on the rise across the globe

This is the latest addition to the increasing crypto-related crimes across the world. European nations such as France and the UK have become a hotspot for crypto-related crimes. Earlier this month, the French police detained seven people in relation to the kidnapping of a 20-year-old Swiss man. 

Additionally, in August, an Indian court sentenced a former Parliamentarian and senior police officers to life imprisonment in connection with a 2018 Bitcoin extortion and kidnapping case. These incidents highlight the call for strict laws for crypto space. 

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