Crypto Turns Criminal in Kolkata: Rs 8.9 Lakh Robbery Shocks Investors
Kolkata Crypto Fraud Exposed: Police Arrest Key Suspects in Growing Cryptocurrency Scam
A shocking cryptocurrency fraud case in Kolkata has sparked renewed concerns about the rising tide of digital scams in India. Authorities have arrested two suspects involved in the kidnapping and robbery of an import-export businessman, as investigations reveal a well-organized network of crypto-related fraudsters operating across multiple states.
According to reports from The Times of India, businessman Brijesh Pandey from Howrah fell victim to a crypto transaction gone wrong on October 28, 2025, after being lured by a group promising him profitable cryptocurrency investments. What began as a routine business meeting quickly turned into a terrifying ordeal.
A Cryptocurrency Deal Turned Criminal
Police reports indicate that a man named Emo initially approached Brijesh Pandey with an offer to sell cryptocurrency. The meeting was arranged at Park Circus, a busy area in South Kolkata. There, Brijesh met another suspect identified as Saddam, who claimed to be part of the transaction. Moments later, Brijesh realized he had walked into a trap.
He was forced into a car by six men, beaten, and robbed of Rs 8.9 lakh in cash — equivalent to more than $10,000. After the assault, the gang dumped him near EM Bypass before fleeing with the money and his belongings.
“The entire act was planned and executed with precision,” a police officer involved in the case told reporters. “They used the pretext of cryptocurrency trading to lure the victim and targeted him for the large sum he carried.”
Arrests and Ongoing Investigation
Police swiftly tracked down two suspects, including the alleged mastermind, Suraj Singh, who has reportedly made over Rs 1 crore through similar scams in the past. Singh was arrested in Sikkim while attempting to flee to Gangtok, with plans to cross over to Kathmandu to start a fake crypto business there.
Investigators say Singh and his gang used multiple digital wallets and fake crypto trading platforms to defraud unsuspecting investors. Police are now searching for four other members of the gang believed to be involved in several similar crimes across India.
Suraj Singh has been remanded in 14 days of police custody, while authorities continue to track digital transactions and devices to determine the scale of his operations. According to sources, forensic experts are examining smartphones, bank accounts, and blockchain trails to follow the stolen money.
A senior officer from the Kolkata Police’s cybercrime division said, “We are investigating whether this group is part of a larger organized network running similar scams in other states. Cryptocurrency has become a new playground for criminals, and we’re tightening our surveillance.”
A Pattern of Crypto Crime
This latest case adds to a string of cryptocurrency frauds uncovered in Kolkata and other parts of India over the past year. In an earlier incident, investors lost more than ₹25 crore in a fake crypto investment scheme that promised high returns. Scammers have increasingly exploited the growing enthusiasm around digital assets, creating fake coins, apps, and investment portals.
According to cybersecurity expert Anirban Saha, “The lure of quick profits and limited understanding of blockchain technology make many investors easy targets. Once money is transferred into crypto wallets, it becomes extremely difficult to trace and recover.”
These crimes often share a common pattern: fraudsters use social media platforms to build trust, promise guaranteed profits, and request investments in cryptocurrency or fiat money. Once the funds are received, the scammers vanish or shut down their fake platforms overnight.
The Rise of Cryptocurrency Scams in India
India’s crypto landscape has grown exponentially in the last few years. Despite the absence of a fully regulated framework, millions of new investors are entering the digital asset market every month. Unfortunately, this growth has also brought an alarming surge in fraudulent activities.
According to a 2025 report by India’s National Cybercrime Bureau, cryptocurrency-related frauds have increased by over 130% in the past two years. Kolkata, Mumbai, and Bengaluru have become major hotspots for crypto-related crimes.
“While legitimate cryptocurrency trading can be profitable, the lack of awareness among retail investors makes scams like this possible,” said Rajeev Bhatia, a financial crime analyst based in New Delhi. “In most cases, scammers exploit the absence of strict digital asset laws and operate in grey zones that are difficult to regulate.”
The Role of Law Enforcement
Police forces across India have stepped up their efforts to track and prosecute cybercriminals. In Kolkata, special cybercrime units have been formed to investigate cryptocurrency-related cases. Officers are now working closely with blockchain forensic experts to trace wallet addresses and identify cross-border money trails.
Authorities believe that cross-state collaboration is key to dismantling such organized networks. The use of international cryptocurrency exchanges and privacy-focused tokens often complicates investigations, making cooperation between state police and federal agencies crucial.
Kolkata Police Commissioner Vineet Goyal recently stated, “The digital economy offers immense opportunities, but also immense risks. Our goal is to ensure investor safety through strict enforcement and digital literacy programs. Cases like this are wake-up calls.”
Protecting Investors and Raising Awareness
Experts say public education remains the strongest defense against such scams. Potential investors are urged to research any cryptocurrency project thoroughly, verify company credentials, and avoid unrealistic profit promises. Using regulated exchanges and avoiding peer-to-peer deals without proper verification can also reduce risk.
Regulators are also being called upon to introduce clear cryptocurrency policies, including mandatory KYC verification for exchanges, anti-money laundering frameworks, and investor grievance mechanisms. Financial watchdogs argue that better laws can deter fraud and improve accountability in India’s growing digital economy.
“India needs a transparent regulatory system,” said Dr. Meera Joshi, an economist at the Indian Institute of Finance. “Until then, the combination of investor greed and lack of oversight will continue to breed scams.”
Lessons from the Kolkata Case
The Kolkata crypto fraud is not just another crime story—it’s a reflection of the challenges that accompany digital innovation. While cryptocurrencies offer new opportunities for financial inclusion and technological progress, they also open doors for exploitation when oversight is weak.
For investors like Brijesh Pandey, the incident serves as a grim reminder of the dangers lurking in unverified crypto deals. As he recovers from the ordeal, police continue their pursuit of the remaining suspects, hoping to bring the entire network to justice.
Authorities have urged citizens to report suspicious investment offers and warned that “guaranteed returns” in crypto are almost always fraudulent.
As India’s crypto ecosystem continues to evolve, one thing is certain: vigilance, regulation, and education must move hand in hand to ensure safety in the digital marketplace.
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