Cryptocurrency Scam Exposed in India. Police Arrest 3 People in the RSN Crypto Scam

Police in Assam, India, have arrested three people for running a huge cryptocurrency scam. The fraud, called the RSN Crypto Scam, tricked over 2000 people.

Police in Assam, India, have arrested three people for allegedly running a cryptocurrency scam that defrauded over 2,000 people and collected between ₹10-₹20 crore ($1.14-$2.29 million), local media reports.

What happened: The scam, known as the RSN Crypto Scam, involved scammers creating a fake cryptocurrency called RSN and promising investors they would earn a daily return of 2%.

Investors were then tricked into buying the token, while behind the scenes, the scammers took the money and converted it into USDT (Tether stablecoin). The funds were then sent to crypto exchanges like Binance.

The money never went back to the investors, who lost everything they invested.

The Indian Cyber Crime Coordination Centre (I4C) helped police track down the scammers and found that the RSN Crypto website was hosted on Amazon servers and had links to China.

Three people were arrested and admitted to manipulating the prices and tricking the investors, but the main suspect is still on the run.

The report comes as crypto scams are becoming increasingly common in India as more people turn to investing in digital assets.

Many of these scams promise huge profits to lure investors, but they usually end up with the victims incurring massive losses.

Here are some of the recent crypto scams in India:

* In August, a new crypto scam called "Bitcoin Bonanza" emerged in India, promising users a 0.2 Bitcoin return on an initial investment of ₹8,000 ($99).

* In July, a cryptocurrency investment scam on the CarbonPay platform tricked people in India into investing, promising a 15% return in seven days.

* In May, police in Mumbai arrested two people for allegedly defrauding people of crores of rupees with a cryptocurrency investment scam. The accused, identified as Sameer Jain and Rohan Jain, allegedly created a fake cryptocurrency exchange and tricked investors into investing their money.

These scams follow a similar pattern, with the fraudsters promising easy money to get people to invest, before disappearing with the funds.

Despite the scams, crypto is becoming increasingly popular in India. In late 2024, trading volumes reached $2 billion.

Many people in smaller cities are turning to crypto as a new way to make money, and experts predict that India’s crypto market will reach $15 billion by 2035.

However, investors need to be aware of the scams and do their research before investing. The RSN scam is a stark reminder of the importance of staying vigilant and making informed decisions when it comes to cryptocurrency investments.

If you are planning to invest in crypto, here are some tips to help you stay safe from scams:

* Be wary of any investment opportunities that seem too good to be true. If an investment promises unrealistic returns, it is likely a scam.

* Only invest in cryptocurrencies that are regulated by a reputable financial institution.

* Do your own research on any cryptocurrency before you invest. Read reviews, articles, and forum posts to get a balanced perspective on the investment.

* Invest only what you can afford to lose. Cryptocurrency is a volatile investment, and you could lose some or all of your investment.

* Be sure to factor in any relevant taxes in your calculations. Cryptocurrency investors are liable to pay taxes on their gains.

The RSN Crypto Scam is a cautionary tale for investors. Many people lost their life savings because they were deceived by promises of easy riches.

While crypto can be a profitable investment, it also carries inherent risks that investors must be aware of and take into account in their investment decisions.

The action of the Assam police in shutting down the scam and recovering some of the stolen money is commendable. However, the best way to stay safe from crypto scams is to be informed about them and invest wisely.