Bengaluru surgeon duped of Rs 4.47 crore in cryptocurrency investment scam

Bengaluru: A 50-year-old doctor from Bengaluru Rural district allegedly lost Rs 4.47 crore in a cryptocurrency investment scam after fraudsters lured him with promises of high returns and displayed fictitious profits of nearly Rs 14 crore on a fake trading platform.

When he tried to withdraw the money, the accused allegedly demanded additional payments on the pretext of taxes, processing charges and other fees.

A surgeon working at a private hospital was initially contacted on WhatsApp in the first half of August by a woman who introduced herself as an investment adviser. She allegedly explained cryptocurrency trading to him and claimed that substantial profits could be earned within a short period. She later shared the contact numbers of another person who was presented as a trading analyst and could assist him with the investments.

The doctor subsequently contacted the person and was allegedly offered a deal under which his money would be traded through a cryptocurrency platform. The accused reportedly promised him 30% of the profits as commission, making the investment appear more attractive. 

The fraudsters then added the doctor to a WhatsApp group called “CoinTrs Transaction”, where members allegedly posted screenshots showing large profits from cryptocurrency trades. The group activity was apparently used to create the impression that other investors were successfully making money through the platform, TOI reported.

The doctor was subsequently sent a link to register on the purported CoinTrs.com trading platform. He was also in contact with the accused through Telegram.

According to TOI, initially, the doctor made a relatively small investment. However, as the fake portal displayed lucrative returns in his account, he was convinced to invest larger amounts. In all, he transferred Rs 4,47,82,080. The scam came to light when he attempted to withdraw the purported profits. Instead of processing the withdrawal, the accused allegedly told him that a “Security Channel” had to be cleared before the money could be released. The platform subsequently showed him a purported profit of $14,77,129, equivalent to around Rs 14 crore.

Between August 23 and September 3, he transferred a total of Rs 4,47,82,080 from his bank account to multiple accounts linked to different entities. The accounts were allegedly associated with entities including Chesain Event Pvt Ltd, MS Subh Yatri Tour and Travels Pvt Ltd, Online Saree Hub, Sipvera Services, Praveen Silk Sarees, Sky Line Relty and Paynex.

However, when he attempted to withdraw the money, he was unable to do so. The additional demands reportedly made the doctor realise that the trading platform and the profits displayed on it were part of an elaborate fraud. 

The doctor subsequently approached the cybercrime helpline 1930 and the Central Cyber Crime police, seeking action against those involved. He has also sought the freezing of the bank accounts allegedly used to receive the money, in an effort to recover the funds.

Police have registered a case under the Information Technology Act and Section 318 of the Bharatiya Nyaya Sanhita (BNS) and are investigating the transactions and the accounts allegedly used in the fraud.

How Cryptocurrency Investment Scams Work

Such scams often begin with unsolicited messages promising unusually high returns. Victims may initially be shown small or apparently successful trades before being encouraged to invest larger amounts. Fake trading portals can then display inflated profits that exist only on the screen.

The fraudsters typically demand additional payments when victims try to withdraw the supposed earnings, using reasons such as taxes, verification charges, security deposits or processing fees.

People should independently verify any cryptocurrency platform before transferring money and should not rely on investment groups, screenshots of profits or unsolicited recommendations received through WhatsApp or Telegram. Any suspected cyber financial fraud should be reported immediately through 1930.