Crypto Quill

A 24-year-old cryptocurrency trader from Bengaluru has been duped out of ₹46 lakh in tether coins by a group of scammers posing as potential buyers. The incident, which highlights the growing risks of crypto trading in India, was reported to the Central Economic Offenses (CEN) police station, who have since registered a First Information Report (FIR) in connection with the case.

The Scam Unfolds

The victim, identified as Manu Rashid, is a trader and the owner of Shri Ram Digital Assets and Services, a company involved in cryptocurrency trading. His brother, Mohammad Shanu, is also part of the business. Manu was contacted by three individuals — Shafi China, Shahabaz M.P.C., and Fazil — who claimed to be buyers interested in purchasing tether coins in exchange for Indian currency.

The accused approached Manu through Binance, one of the largest cryptocurrency exchanges in the world, and proposed a trade. After some initial discussions, Manu invited the suspects to meet and discuss the trade further. However, what seemed like a legitimate business transaction soon turned into a scam.

How the Scam Happened

Manu, trusting the traders, went ahead with the deal. However, after transferring the tether coins worth ₹46 lakh, the accused reportedly vanished, leaving Manu with no recourse. Upon realizing he had been scammed, Manu filed an FIR, prompting the police to launch an investigation.

This case underscores the risks associated with cryptocurrency transactions, particularly on peer-to-peer platforms, where scammers often exploit the anonymity of the digital asset market. While Binance itself is a legitimate exchange, it is important for traders to exercise caution when dealing with unfamiliar parties, especially when large sums are involved.

The Growing Need for Crypto Regulation

As incidents like this become more common, the need for robust regulation and fraud prevention measures in the cryptocurrency market has become increasingly apparent. Without proper oversight, investors are left vulnerable to scams, making it essential for both traders and exchanges to enforce stricter verification processes.

With India still in the process of figuring out its stance on cryptocurrency regulation, cases like Manu’s highlight the dangers of a largely unregulated market.