India saw over ₹3 crore in crypto scam losses in early May 2026, involving fake trading apps, WhatsApp groups, wallet drainers, and blackmail. Police reported cases across several states, while the ED and MHA expanded action against crypto-linked financial crimes.
Crypto fraud cases in India rose sharply in the first week of May 2026, with reported losses crossing ₹3 crore across several states. Police reports showed fake trading apps, WhatsApp investment groups, wallet drainer scams, and blackmail-linked fraud cases.
The cases also came as the Enforcement Directorate increased its focus on crypto-linked financial crimes. Besides, the Ministry of Home Affairs issued an advisory on Trust Wallet drainer scams after cybercriminals used fake verification websites to steal funds.
Ahmedabad Artist Loses ₹27 Lakh in Fake Crypto Platform
An artist in Ahmedabad reportedly lost ₹27 lakh after joining a fake cryptocurrency trading platform through social media. The fraudsters presented the platform as a real investment service and showed false profits on a fake dashboard.
The victim was later asked to deposit more money to increase returns. However, the platform blocked withdrawals after the payments. This pattern has appeared in several crypto scam cases across India.
Ahmedabad has already reported many cyber fraud cases. Gujarat Assembly data showed that the city recorded 694 cyber fraud cases between February 2024 and January 2026. These cases involved losses of ₹134.45 crore. Police recovered ₹49.01 crore in 315 traced cases. However, the recovery gap remains wide as many fraud networks use fake accounts and fast fund transfers.
Varanasi Fraud Case Leads to Arrest After Victim’s Death
A more serious case surfaced in Varanasi, Uttar Pradesh, where police arrested Suraj Kumar in a ₹56 lakh crypto-forex fraud case. The victim, Nutan Yadav, was allegedly lured with offers linked to forex trading, cryptocurrency investments and real estate schemes.
The accused reportedly claimed to be investment advisers. They showed small fake profits to gain trust and later pushed the victim to transfer ₹56 lakh into several bank accounts.
When Yadav asked for her money back, the accused allegedly used an obscene video to blackmail her. They reportedly demanded another ₹11 lakh and threatened to circulate the video.
Yadav died by suicide on April 9, 2026. Her sister later filed a complaint, which led to police action. Another accused, Vishnu Jaiswal, had already been arrested.
Police are now checking bank accounts, phones, and digital transaction records. Investigators believe the group used social media, fake websites, and calling systems to target victims.
ED Expands Action Against Crypto-Linked Financial Crimes
On May 1, Enforcement Directorate Director Rahul Navin said the agency would focus more on cryptocurrency fraud, cyber crimes, terror financing, and narcotics-related money laundering. The agency has shifted attention toward technology-based financial crime.
The ED also filed a second supplementary chargesheet in the ₹2,200 crore HPZ Token scam. The case involved a mobile app that promised high profits from Bitcoin mining machines.
The platform launched in June 2021 and shut down in August 2021. Thousands of investors across India were later unable to access their money.
The ED probe found shell firms, payment gateways, and cross-border links. Officials are tracking how the funds moved through different channels.
MHA Advisory Warns Users About Wallet Drainer Scams
The Ministry of Home Affairs, through the Indian Cyber Crime Coordination Centre, issued an advisory on Trust Wallet drainer scams. The advisory described how scammers contact users through social media or messaging apps.
Victims are then sent to fake websites posing as BNB Chain verification pages. These websites ask users to connect their wallets and approve permissions. One permission allows scammers to move funds without further approval. Once the user signs the request, the drainer script transfers the funds.
Several other cases also involved older victims. A retired professor in Hyderabad lost ₹3.2 crore through a fake crypto platform promoted in a Telegram group. In Lucknow, a businessman lost ₹1.15 crore after a trusted associate pushed him into a fake SIP and crypto investment scheme.
The first week of May showed a clear fraud pattern. Scammers used WhatsApp, Telegram, social media, fake dashboards, and false claims such as “guaranteed returns” to trap victims.
Victims in India are advised to report crypto-related cybercrime through cybercrime.gov.in or call 1930.
