Indian police have successfully dismantled a work-from-home scam in Delhi that involved laundering stolen funds through cryptocurrency. The operation led to the arrest of five individuals, including a woman known as Delhi’s ‘crypto queen’.
The accused were operating a Telegram-based network that targeted victims with fake online tasks, promising high commissions and incentives. One victim from Delhi’s Burari area reported losing over ₹17.29 lakh (approximately $20,000) while searching for online job opportunities. The scammers used the victim’s identity to secure personal loans totaling ₹8.8 lakh from banks.
The fraudsters funneled the stolen funds through multiple bank accounts before converting them into USDT (Tether), a stablecoin pegged to the U.S. dollar. They utilized encrypted platforms like Telegram and WhatsApp with international numbers to avoid detection.
The central figure managing fund transfers, Krish, sourced bank account details and UPI IDs to facilitate the conversion of funds into crypto. Nidhi Agarwal, known as the “Crypto Queen,” played a crucial role in laundering the money by converting it into USDT without any official license. She purchased crypto from unregulated vendors and resold it for profit using international numbers.
Two other accused, Deepa and Gaurav, assisted in recruiting account holders to lend their bank accounts for transfers and helped in moving physical cash. In a separate incident, a 56-year-old doctor from Kannammoola fell victim to a cryptocurrency romance scam, losing ₹1.01 crore (approximately $115,000) to a fraudulent scheme.
These incidents highlight the pressing need for a comprehensive regulatory framework for cryptocurrencies in India. Despite the Supreme Court’s 2020 ruling overturning the banking ban on crypto, there has been minimal progress in establishing clear guidelines for the sector. The Reserve Bank of India continues to oppose private cryptocurrencies, citing risks to monetary policy and financial stability.
While the Income Tax Department has intensified efforts to combat crypto-related tax evasion, the absence of licensing, monitoring, and consumer protections in the crypto space allows criminals to exploit regulatory gaps. Crypto gains in India are currently taxed at a flat rate of 30% under the Income Tax Act, with an additional 1% TDS on transactions.
The lack of robust regulations in India underscores the urgent need for authorities to address the challenges posed by cryptocurrency scams and illicit activities. Implementing stringent measures to regulate the crypto sector is essential to safeguard investors and prevent fraudulent schemes from thriving unchecked.