From Hype to Heist: Inside Kolkata’s Explosive ₹25 Crore Crypto Fraud

 

Kolkata’s ₹25 Crore Crypto Scam Exposed: Police Uncover Massive Digital Fraud Network

KOLKATA — What began as a promise of quick wealth in India’s fast-growing cryptocurrency market has now unraveled into one of the biggest financial scandals to hit the city in recent years. Authorities in Kolkata are probing a ₹25 crore crypto fraud that has reportedly trapped dozens of unsuspecting investors, marking another grim reminder of the dark side of digital asset investing in India.

According to police officials, two suspects — identified as Anirban Ghosh and Priyanka Sahu — were arrested by the Bank Fraud Division of Lalbazar Police on October 30. They allegedly operated an elaborate scam disguised as a high-yield cryptocurrency investment scheme, luring investors with the promise of extraordinary returns.

Police Crack Down on ₹25 Crore Crypto Investment Fraud

The investigation began when a complaint was filed at Shakespeare Sarani Police Station by a local businessman who claimed he had been cheated after investing a large sum in what was described as a “premium digital assets opportunity.” The complainant alleged that the accused presented official-looking documents, convincing presentations, and digital dashboards to gain investor trust.

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The fraud reportedly involved multiple online platforms where investors were shown fake profit statements and wallet balances. However, the funds were later found to be diverted to private bank accounts and offshore digital wallets.

“The accused created an illusion of legitimacy by using sophisticated marketing tactics and professional-looking websites,” said an officer involved in the case. “Once a critical mass of investors joined, the operation suddenly vanished — leaving no trace except empty wallets and false promises.”

Preliminary reports suggest that the fraudsters may have been running similar schemes across several Indian states, using cryptocurrency’s decentralized nature to mask transactions and complicate law enforcement tracking efforts.

Court Proceedings and Police Custody

Following their arrest, Ghosh and Sahu were presented before the Bankshall Court on October 31. The prosecution provided detailed evidence indicating that the duo had been operating a premeditated scheme designed to deceive investors.

The court remanded both suspects to 14 days of police custody, allowing investigators more time to trace the flow of funds and identify potential accomplices. Authorities are now examining whether the suspects were part of a larger organized digital fraud syndicate operating out of multiple Indian cities.

“Several digital devices, including laptops, mobile phones, and cryptocurrency wallet records, have been seized,” a senior police official confirmed. “We are working with cyber experts to analyze blockchain transactions and recover stolen assets wherever possible.”

India’s Rising Tide of Crypto Scams

The Kolkata case is only the latest in a growing list of cryptocurrency-related frauds emerging across India in 2025. As crypto adoption widens and digital investments become more mainstream, scammers are increasingly exploiting gaps in regulation and investor awareness.

According to the Cyber Crime Division, India has witnessed a 40% increase in crypto scam reports compared to 2024, with most victims drawn in through fake trading apps, social media influencers, or unauthorized online exchanges promising unrealistic returns.

“Many of these scams follow a similar pattern — small initial profits are shown to build trust, followed by requests for larger deposits. Once the money flows in, the platform disappears,” said cybercrime analyst Ritesh Menon. “The anonymity of blockchain makes recovery extremely difficult.”

Law enforcement officials have urged the public to remain vigilant, avoid unverified investment platforms, and check for registration under India’s financial regulatory authorities before investing.

Warnings from Experts

Financial experts emphasize that investors should exercise due diligence and avoid “get-rich-quick” cryptocurrency offers. Many scams use buzzwords like “DeFi yield farming,” “staking rewards,” or “AI-driven trading algorithms” to sound legitimate while hiding fraudulent intentions.

“Investing in digital assets requires the same discipline as traditional finance,” said Mumbai-based economist Dr. Alok Deshmukh. “Promises of 10x or 20x returns are clear warning signs. Regulation is improving, but the ultimate responsibility lies with the investor.”

The Reserve Bank of India (RBI) and the Ministry of Finance have both issued multiple advisories urging citizens to invest only through verified crypto exchanges that comply with anti-money-laundering (AML) and Know Your Customer (KYC) regulations.

A Wake-Up Call for India’s Crypto Market

This incident underscores an urgent need for stronger oversight in India’s digital investment landscape. While the nation is home to one of the world’s fastest-growing crypto user bases — estimated at over 115 million users — enforcement and investor protection mechanisms still lag behind.

Kolkata’s ₹25 crore crypto scandal has become symbolic of both India’s growing enthusiasm for digital assets and the risks that come with it. As police continue tracing funds across multiple blockchain networks, this case may serve as a model for future investigations.

The authorities have confirmed that they are also coordinating with major crypto exchanges, both domestic and international, to track wallet addresses associated with the scam.

Conclusion

The Kolkata crypto scam serves as a sobering reminder that while the promise of cryptocurrency may seem limitless, it is equally a playground for fraud if unchecked. Investors are encouraged to remain cautious, verify all project credentials, and stay informed through credible sources before committing their money to digital assets.

As police widen their investigation, the story continues to unfold — not just as a case of financial fraud, but as a reflection of India’s evolving relationship with the world of cryptocurrency.

If proven guilty, the accused could face charges under the Indian Penal Code (IPC) for criminal breach of trust, cheating, and cyber fraud — offenses that carry severe penalties, including long-term imprisonment.

Until then, the message from law enforcement remains clear: in the world of digital money, trust is valuable — but verification is essential.

Writer @Ellena

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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