The Delhi Police recently made a significant breakthrough in cracking down on a sophisticated fraud operation, seizing over 100,000 USDT in digital assets and arresting several individuals involved in the scam. The suspects were found to be running a fraudulent entity named “M/s Goldcoat Solar,” which falsely claimed government authorization to contribute to India’s renewable energy expansion.
The fraudsters deceived investors by falsely asserting that they had secured rights from the Ministry of Power to support India’s goal of increasing solar power capacity to 450 gigawatts by 2030. They lured individuals in with promises of substantial returns, using the national energy plan as a guise for their fraudulent activities.
The scam gained traction through social media platforms, where “M/s Goldcoat Solar” was promoted as a legitimate investment opportunity. The perpetrators went as far as impersonating high-ranking government officials and using the names of dignitaries to falsely endorse their scheme. To build trust and legitimize their operation, they showed investors fabricated earnings reports from supposed earlier participants.
The funds deposited by victims were funneled through banks, with a portion being converted into digital assets. With the assistance of Binance, law enforcement was able to trace the financial transactions to track down the suspects. Jarek Jakubcek, Head of Law Enforcement Training at Binance, emphasized the importance of collaboration between industry and law enforcement in resolving such cases.
In a related development, the Hong Kong Police Force (HKPF) also made headway in dismantling a cross-border fraud center in Hong Kong, arresting 27 individuals connected to a scam exceeding HK$360 million. The organization behind the scam utilized “romance scams” to deceive victims into investing in cryptocurrency.
Operating from a well-organized, 4,000-square-foot center in Hung Hom, the group recruited local university graduates specializing in digital media as technology experts. They collaborated with overseas fraudsters and IT specialists to create a fake crypto investment platform, using artificial intelligence-based deepfake technology to conduct video chats and deceive victims into investing in the bogus platform.
The HKPF arrested 21 men and six women, aged between 21 and 34, on charges of conspiracy to defraud and possession of offensive weapons. The police described the fraud center as unusually large and meticulously organized, highlighting the sophistication of the operation.
Overall, these recent crackdowns on fraudulent operations by law enforcement agencies in Delhi and Hong Kong demonstrate the importance of vigilance in the crypto space and the need for strong collaboration between industry players and authorities to combat such scams effectively.