Indian police probe INR 10m crypto investment scam with suspected link to Hong Kong

As a seasoned crypto investor with years of experience under my belt, I can’t help but feel a sense of deja vu reading about yet another cryptocurrency scam in India. The Datameer app is just the latest in a long line of fraudulent schemes that have preyed upon unsuspecting investors, capitalizing on the hype surrounding digital currencies.


The Indian authorities are currently probing the “Datameer” cryptocurrency trading platform over claims that it swindled approximately 700 residents, totaling around INR 10 million.

Based on a local news source, this investment plan claimed potential earnings of up to 50%, leading unaware investors to believe that their money was being put into cryptocurrencies.

Once the investors transferred their money through the fake app, the app shut down, and the scammers disappeared. During the time it was active, the scam managed to dupe investors of more than inr 10 million (roughly $119,000).

India has witnessed a spike in crypto demand despite a lack of solid crypto regulations, and a punishing taxation regime, with the nation managing to claim the top spot in Chainalysis’ 2024 Global Crypto Adoption Index. However, this growing appetite for cryptocurrencies has opened doors for scammers who are exploiting the hype.

As a researcher, I’d like to highlight an interesting observation from my study conducted post-April 2024. The intriguing Datameer app, active for a brief five months, successfully attracted investments ranging from small to large scale. This captivating trend was even acknowledged by the Superintendent of Police and Head of Cyber Wing, Pankaj Kumar Rasgania.

Fraudsters tricked naive people on social media platforms, persuading them to put money into an investment opportunity that guaranteed massive profits quickly,” the individual further explained.

Initial findings indicate that the individuals responsible for the app may reside in various parts of the country, with potential ties in Hong Kong. Law enforcement agencies are collaborating with cyber specialists from police departments throughout the nation, and further details will be shared as the probe continues.

Such scams have sparked worries given their possible ties across international borders, notably areas in China. In fact, similar associations have emerged during probes conducted by the Indian authorities on previous occasions as well.

As a researcher, I find myself reflecting on an event that transpired in March. At that time, the Enforcement Directorate (ED) submitted a charge sheet implicating 299 entities, many of which were individuals of Chinese descent, under anti-money laundering regulations. These entities were associated with a mobile application known as “HPZ Token.” This app is alleged to have misled investors with enticing promises of substantial returns from cryptocurrency mining activities.

As a researcher, I uncovered an instance where fraudsters successfully deceived a medical professional in India, persuading him to transfer approximately $35,000 as part of a counterfeit ‘drugs-in-parcel’ scheme. Investigations revealed that the pilfered funds were routed through various banking platforms, converted into cryptocurrencies, and eventually transferred to accounts based in China and Taiwan.

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2024-09-16 13:56