Investment Scams in Cryptocurrencies in India: The Dramatic Case of Naved Alam


New Cryptocurrency Investment Scams in India

India, being one of the largest cryptocurrency markets, is currently experiencing a new wave of scams that pose a significant threat to investors. In a recent incident, Naved Alam lost around $3,000, which equals roughly 2.5 lakhs INR, due to scammers impersonating recruiters.

How Did the Scam Unfold?

The scammers, posing as recruiters, contacted Alam offering him a role as a product designer for a web3 communication application called ‘SocialSpectra’. They then persuaded him to engage in a conversation on the Discord platform, where, pretending to be employers, they provided a link that turned out to be malicious software.

This malware cleared Alam’s Phantom wallet, wiping out his assets deposited on the Kamino Finance defi platform, resulting in a significant financial loss for the investor.

Reaction After Money Loss

After the incident, Naved Alam tried to recover his funds from the scammer posing as a recruiter, but at the time of publication, the fraudster had a suspended X profile, complicating the process of retrieving the lost funds.

Situation in the Context of Cryptocurrency Regulations in India and Worldwide

This scam took place at a time when Indian authorities are stepping up efforts to combat illegal activities related to cryptocurrencies. Previously, the Indian Enforcement Directorate filed charges against 299 entities accused of money laundering in connection with scams offering investments in cryptocurrency mining.

On an international scale, South Korean authorities recently cracked down on a similar scam where victims lost over $4.1 million, promising huge profits from cryptocurrency investments.