Indian police have dismantled a work-from-home scam that laundered stolen funds through cryptocurrency, arresting five individuals, including a woman dubbed Delhi’s ‘crypto queen’.
Summary
- Five people were arrested in Delhi for running a scam and laundering funds via crypto.
- Key accused, dubbed ‘Crypto Queen,’ allegedly operated as an unlicensed crypto handler using international channels.
- Crypto-related fraud cases are rising across India amid a lack of formal regulatory oversight.
According to local media, the accused ran a Telegram-based network that lured victims into completing fake online tasks, extracting payments on the pretext of unlocking higher incentives, and eventually funnelling the money through unregulated crypto channels.
The operation came to light after a 29-year-old woman from Delhi’s Burari area filed a complaint, stating that she was defrauded of over ₹17.29 lakh (roughly $20,000) while she was hunting for online job opportunities.
How did the scam work?
The Delhi Police revealed that the victim was promised high commissions for completing simple digital tasks. Initially, small payments created the illusion of legitimacy, but soon she was coerced into making repeated transfers with the lure of higher returns.
Unbeknownst to her, the fraudsters also misused her identity to secure personal loans worth ₹8.8 lakh from banks.
Authorities claim the funds were funneled through multiple “mule” bank accounts, ultimately converted into USDT (Tether), a stablecoin pegged to the U.S. dollar.
These conversions were facilitated by members of the group operating over encrypted platforms like Telegram and WhatsApp, using international numbers to avoid detection.
Krish, a 19-year-old, was identified as the central figure managing fund transfers. He sourced bank account details and UPI IDs from associates and passed them to crypto buyers. The stolen funds were either withdrawn in cash or handed over for crypto conversion.
Nidhi Agarwal, referred to within the group as the “Crypto Queen,” played a key role in laundering the money by converting it into USDT.
Operating without any official license, she purchased crypto from unregulated vendors and resold it at a profit. She used international numbers and online platforms to evade local oversight, police said.
Meanwhile, Deepa and Gaurav, two other accused, helped recruit account holders willing to lend their bank accounts for transfers and also assisted in moving physical cash.
Indian doctor loses over $115k to crypto scammers
In a separate incident reported over the weekend, a 56-year-old doctor from Kannammoola lost ₹1.01 (approximately $115,000) crore in a cryptocurrency romance scam.
The scam, which unfolded between January and May this year, involved a woman who posed as a fellow doctor and contacted the victim via WhatsApp, claiming she had made substantial profits through crypto trading.
Initially, the victim received attractive returns, which prompted him to invest more. However, when the doctor attempted to withdraw funds, he was told to pay 30% of the profit as U.S. income tax.
No crypto regulations in India
These incidents have reignited concerns over the lack of a comprehensive regulatory framework for cryptocurrencies in India. In the absence of regulations, criminals are exploiting gaps in oversight.
Despite the Supreme Court’s 2020 ruling overturning the Reserve Bank of India’s earlier banking ban on crypto, there has been little progress in formulating clear guidelines to govern the sector.
The Reserve Bank of India continues to oppose private cryptocurrencies, warning that they pose risks to monetary policy and financial stability.
Instead, India’s tax authorities have doubled down on enforcement. The Income Tax Department has launched multiple campaigns targeting crypto-related tax evasion.
Crypto gains in India are taxed at a flat 30% under Section 115BBH of the Income Tax Act, with an additional 1% TDS on transactions. While taxation has brought some visibility to crypto transactions, the absence of licensing, monitoring, and consumer protections is enabling bad actors to thrive.
