India’s Thane Police Unveil Special Crypto Cell to Crack Down on Soaring Scams

Thane Police Launch Special Crypto Cell to Combat Rising Scams in India

In a landmark move aimed at addressing the country’s growing battle against cryptocurrency-related fraud, police officials in Thane, part of the Mumbai Metropolitan Region, have announced the launch of a dedicated Cryptocurrency Investigation Cell. The initiative, introduced on September 27, 2025, is designed to tackle the alarming rise in digital currency crimes that have swept across India and the global financial system in recent years.

Authorities say the new crypto cell will trace anonymous blockchain transactions, dismantle fraudulent investment schemes, and monitor layered bank accounts used to launder stolen funds. The unit will also coordinate with cybercrime specialists and financial intelligence agencies to strengthen India’s ability to investigate and prosecute complex digital fraud cases.

The step comes as cryptocurrency adoption expands rapidly in India, but with it, cybercriminals are seizing new opportunities. Officials say the situation demands swift, innovative responses to safeguard both retail investors and the integrity of the financial system.

A Growing Crisis in Digital Finance

India has witnessed a staggering increase in crypto-related fraud. Between April 2024 and January 2025, the country reported over ₹4,245 crore (approximately $510 million) in digital financial scams across 2.4 million incidents, representing a 67% jump from the previous year.

Source: X

Globally, the problem is even more severe. By the middle of 2025, losses from cryptocurrency scams had already surpassed $2.17 billion, eclipsing the total for all of 2024. The largest contributor to this figure was the record-breaking $1.5 billion ByBit hack, widely attributed to state-sponsored actors in North Korea.

Victims of such crimes are not confined to a single geography. Reports of cryptocurrency fraud have surged across the United States, Germany, Russia, Canada, Japan, Indonesia, and South Korea, while emerging markets in Eastern Europe, the Middle East, and parts of Africa are also recording sharp increases.

Officials in Thane argue that India cannot remain passive in the face of such alarming numbers. “We need to get ahead of this threat,” one senior police officer told ABC News. “The Cryptocurrency Investigation Cell will give us the tools to understand the blockchain trail and pursue criminals who believe they can hide in anonymity.”

How the New Crypto Cell Works

The newly formed cell will deploy a team of cybercrime experts, blockchain analysts, and financial investigators. Their primary tasks will include:

Source: ChainAnalysis

• Tracing blockchain transactions to uncover fraudulent wallets and exchanges.

• Identifying layering techniques used by scammers to move stolen funds through multiple accounts.

• Monitoring high-risk exchanges and trading platforms often used in illegal activities.

• Collaborating with global financial intelligence units to exchange real-time data and track cross-border scams.

According to police, the unit will also serve as a training hub for other law enforcement branches, equipping officers with the skills needed to manage complex digital financial investigations.

Rising Crypto Crime Cases in India

The urgency of the move is underscored by a wave of high-profile cases in recent months:

Source: ChainAnalysis

• Delhi Coin-Ex Fraud: Police arrested Naresh Kumar, a 34-year-old resident of Karnal, accused of running a cryptocurrency fraud worth ₹34 lakh ($40,000). Victims were lured through social media into fake trading groups promising lucrative returns.

• Layered Syndicate Operations: Investigators traced ₹9 lakh across various accounts linked to syndicates, with Kumar receiving a monthly commission for facilitating fraud.

• Major Hacks: India has also been impacted by large-scale global breaches, including the $44 million CoinDCX hack and the ₹230 million WazirX losses.

• ByBit Breach: The $1.5 billion ByBit hack remains the largest crypto theft in history, sending shockwaves across India’s investor community.

• Domestic Scams: A “digital arrest” scheme in Andhra Pradesh tricked a retired doctor into losing ₹1.1 crore ($132,000). Similar scams across eight states accounted for ₹14 crore ($1.7 million) in losses. Meanwhile, a rare coin scam in Hyderabad led to a ₹3.6 lakh ($4,300) loss.

• High-Profile Probe: The Enforcement Directorate filed a case against businessman Raj Kundra over an alleged ₹150 crore ($18 million) crypto fraud.

These cases highlight the scale and sophistication of scams, often blending traditional deception with cutting-edge digital technology.

Government Steps Up with Regulations

Recognizing the seriousness of the threat, the Indian government has rolled out a series of measures to curb crypto-related crimes:

• The Department of Telecommunications (DoT) and the Financial Intelligence Unit (FIU-IND) signed an agreement to share real-time data on suspicious mobile numbers tied to fraud.

• More than 2.84 crore fraudulent connections have been blocked, preventing losses estimated at ₹140 crore ($17 million).

• The government mandated cybersecurity audits of all cryptocurrency exchanges, ensuring compliance with anti-money laundering laws.

• Starting April 1, 2026, the Reserve Bank of India will require two-factor authentication for all digital payments, a move expected to drastically reduce fraud.

Officials stress these measures are not designed to stifle innovation but to balance the country’s ambition of becoming a global hub for blockchain with the need to protect its citizens.

Global Context

India’s response mirrors efforts elsewhere. In the United States, crypto-related crime rose 42% between 2023 and 2024, prompting the FBI and Department of Justice to expand their digital asset task forces. The European Union has adopted stricter licensing requirements for exchanges, while countries like Japan and South Korea have introduced real-time transaction monitoring systems.

Experts say the Thane initiative could serve as a model for other Indian cities. “The decentralized nature of crypto makes local enforcement difficult,” said cybersecurity analyst Meera Krishnan. “But having dedicated cells means the police are no longer playing catch-up. Instead, they’re building specialized knowledge that can be scaled nationwide.”

The Road Ahead

For everyday investors, the launch of the crypto cell may not immediately stop scams, but it signals that law enforcement is adapting to the digital age. Analysts believe that strong enforcement, combined with better public awareness, could create a safer environment for cryptocurrency adoption in India.

Still, challenges remain. The cross-border nature of crypto crimes means many scams originate outside India’s jurisdiction. Cooperation with Interpol, Europol, and other international agencies will be critical. Furthermore, as criminals adopt artificial intelligence tools to create more convincing fraud schemes, investigators will need to keep evolving their tactics.

Despite these hurdles, authorities remain confident. “We’re at the beginning of a long battle,” a Thane police official said. “But with this step, we’re sending a clear message: India will not be a safe haven for crypto criminals.”

Conclusion

The creation of the Thane Cryptocurrency Investigation Cell underscores India’s determination to combat rising crypto scams. Backed by new regulatory safeguards, increased technological capabilities, and a growing focus on public protection, the move marks a turning point in the country’s digital finance landscape.

As cryptocurrency continues to reshape the global economy, India’s efforts reflect a broader reality: the future of money may be digital, but so too is the threat. Whether the new measures will be enough to outpace increasingly sophisticated fraudsters remains to be seen, but one thing is clear—law enforcement is no longer on the sidelines.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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