Law enforcement in India has arrested three in connection to a large-scale crypto fraud that lured over 2,000 victims with promises of lucrative returns.
According to local media, police in the northeastern Indian state of Assam have cracked down on the RSN Crypto scam, an elaborate scheme that deceived investors with misleading profit guarantees and a bogus online platform.
While active, the operators allegedly duped over 2,000 victims and managed to amass between inr 10-20 crore ($1.14-2.29 million).
Scammers advertised the RSN crypto token as a promising investment that would offer a 2% daily return. However, the investigation revealed that the investments accrued were quickly converted into Tether-issued stablecoin USDT using crypto exchanges like Binance.
The Indian Cyber Crime Coordination Centre (I4C) was brought in to track the operation. Investigators found that the website was hosted on an Amazon server and had alleged ties to entities in China.
Police have arrested three suspects who admitted to manipulating crypto values and coercing victims into investing. Another key suspect, believed to be the head of the operation, remained at large when writing.
Chinese scammers have increasingly targeted Indian investors through fraudulent crypto projects, exploiting the rising interest in digital assets. Many of these schemes follow a familiar pattern.
Earlier this year, authorities busted the Datameer crypto trading app scam, which swindled at least 700 investors out of inr 10 million ($114,000). In another major case, the Enforcement Directorate charged 299 Chinese entities last year for operating the HPZ Token fraud, a crypto mining scam.
Illicit crypto activity in India has surged alongside the country’s growing appetite for digital assets.
With crypto trading volumes jumping to nearly $2 billion in late 2024, many small-city investors are reportedly turning to crypto in search of new income streams. According to one expert, the crypto market in India is projected to grow beyond $15 billion by 2035.
