Indian Police Officer Arrested For Siphoning Over $200K In Bitcoin Related To Crypto Scam Investigation

Bitcoin crypto scam India

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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May 31, 2024 13:38 EDT

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An Indian police officer was arrested on May 31 for allegedly stealing Bitcoin worth INR 1.8 crore (approximately $216,000) during a crypto scam investigation.

Indian Police Scam Reveals Collaboration With Bitcoin Wallet Hacker

According to local media news Hindustan Times, the Special Investigation Team (SIT) of the Central Crime Branch (CCB) apprehended the police inspector named Chandradhar. This marks the fourth arrest in the ongoing 2020 Bitcoin scam case.

According to the Indian police scam report, police inspector Chandradhar allegedly accessed Bitcoin wallets illegally and stole INR 1.8 crore worth of Bitcoin. He also destroyed evidence related to these transactions.

The officer faces charges under several sections of the Indian Penal Code (IPC), including criminal breach of trust, mischief, common intention, omission, cooperation in crime, and destruction of evidence.

The investigation has led to the arrests of two other police officers, Prashanth Babu and Lakshmikanthaiah, who were previously arrested for similar crimes. They and Chandradhar used their positions to manipulate and access critical information unlawfully.

India Bitcoin Scams Continue to Scale

India has witnessed an increase in Bitcoin scams and frauds, prompting regulators to tighten their oversight of the nation’s crypto sector.

On May 1, Crypto News reported that the Central Bureau of Investigation (CBI) in India conducted a nationwide search operation to crack down on an app-based fraudulent investment scheme. The searches spanned 30 locations across 10 Indian states and Union Territories, targeting two private companies and their directors accused of involvement in the HPZ Token App scheme.

Incriminating documents and digital evidence, such as mobile phones, hard drives, SIM cards, debit cards, and email accounts, were seized during the search.

Investigators revealed that the fraudsters enticed victims to invest in the app by guaranteeing huge returns on Bitcoin mining investments. So far, the probe has identified around 150 bank accounts allegedly used by the accused to collect funds from investors. The investigation is ongoing.

The incident is reminiscent of the 2018 ‘Gain Bitcoin’ Ponzi scheme, where businessman Amit Bhardwaj defrauded over 8,000 individuals, amounting to INR 2,000 crore.

ED attaches assets worth Rs. 42.88 crore in GainBitcoin Ponzi Scheme masterminded by Amit Bhardwaj and associates.

— ED (@dir_ed) September 21, 2018

Bhardwaj engineered a multi-level marketing scam, manipulating and enticing investors to exchange Bitcoins with the promise of high returns. He introduced an 18-month contract guaranteeing a 10 percent yield, which ultimately turned out to be fraudulent.

In April 2024, the Indian authorities seized $11 million from a top British-Indian businessman who received 285 Bitcoin from Bhardwaj.