Media: Bitcoin scammers step up after India lifts crypto-trading restrictions

The Supreme Court of India’s removal of restrictions on cryptocurrency trading in March this year led to a sharp rise in the number of Bitcoin investors. Cyber scammers took advantage, launching fake apps to defraud them, according to India TV

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Scammers promote offers through social networks, targeting wealthy Indians, the publication clarified.

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They offer to buy and sell bitcoins via an app, allegedly trading with other users around the world. After receiving funds, the criminals disappear into their system and cut off communication.

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Founder and CEO of Avalance Global Solutions Manan Shah confirmed that he personally knows many wealthy Indians who have fallen victim to scammers. In his words, one businessman lost 280 million rupees (~$3.75 million) as a result of crypto fraud.

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Co-founder and CEO of the largest Indian crypto exchange CoinDCX Sumita Gupta believes that as the popularity of Bitcoin and digital assets grows, new fake apps and other forms of cryptocurrency scams will appear.

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“Scammers and hackers are becoming increasingly sophisticated in their methods. When installing apps, it is important to follow some basic safety principles, especially when virtual currencies are at stake,” Gupta said.

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The Reserve Bank of India’s (RBI) decision to ban banking services for companies involved in cryptocurrency trading had been in effect since 2018.

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After its repeal, CoinDCX recorded a 47% rise in trading volume, a tenfold increase in registered users, and a 150% increase in daily active users.

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As Jump Capital placed India among the countries with the greatest potential to adopt bitcoin and other cryptocurrencies. Meanwhile, Indian authorities continue to discuss a legislative ban on digital assets or trading them.

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