Law enforcement authorities in India have arrested three individuals in connection with the RSN Crypto scam, a large-scale fraud that deceived over 2,000 victims with promises of high returns. The scam, which operated in the northeastern state of Assam, reportedly amassed between INR 10-20 crore ($1.14-2.29 million) before being dismantled.
The RSN Crypto Scam: A Scheme Built on False Promises
The perpetrators of the RSN Crypto scam lured investors by marketing RSN tokens as a lucrative opportunity, promising an unrealistic 2% daily return. However, investigators discovered that instead of generating profits for investors, the scheme’s operators converted the collected funds into Tether (USDT) and transferred them through major cryptocurrency exchanges like Binance.
The Indian Cyber Crime Coordination Centre (I4C) was called in to assist with the investigation. Authorities tracked the fraudulent operation to an Amazon-hosted server and uncovered links to entities based in China. While three suspects have been arrested and admitted to manipulating crypto values and coercing victims into investing, the alleged mastermind behind the scheme remains at large.
The Growing Threat of Crypto Scams in India
This case is the latest in a series of crypto-related frauds that have targeted Indian investors. Earlier this year, authorities uncovered the Datameer crypto trading app scam, which swindled at least 700 investors out of INR 10 million ($114,000). Additionally, in 2023, the Enforcement Directorate charged 299 Chinese-linked entities for orchestrating the HPZ Token fraud, a crypto mining scam.
The Rise of Illicit Crypto Activity in India
As India’s cryptocurrency market continues to expand, fraudulent schemes have also proliferated. With crypto trading volumes surging to nearly $2 billion in late 2024, many small-city investors have turned to digital assets in search of new income streams. According to industry projections, India’s crypto market is expected to grow beyond $15 billion by 2035.
While authorities have intensified efforts to crack down on illicit crypto activities, the rising number of scams highlights the urgent need for greater regulatory oversight and investor awareness. Law enforcement officials continue to investigate the RSN Crypto scam, with efforts underway to apprehend the key suspect still at large.
