ED Uncovers Massive Crypto-Fraud in India Involving 26 Fake Websites

• ED uncovers pan-India crypto fraud using 26 fake investment websites.
• Scammers lured investors with high returns and celebrity endorsements.
• Illicit funds moved through wallets, foreign banks, and hawala networks.
• India strengthens crypto regulations amid growing digital asset adoption.

A huge crypto fraud was recently uncovered by the Enforcement Directorate in India. There were at least 26 websites that belonged to an India-wide syndicate. The websites copied legitimate crypto sites to deceive investors. The investors were promised huge amounts of profit and sophisticated marketing techniques. Indian and foreign investors alike became prey to these fake websites. They lost substantial amounts in them.

The scammers used the images of some stars and the endorsements of some experts without permission. The scammers also paid some initial investors to gain the investors’ trust. These practices are common in the Ponzi and multi-level marketing schemes. Facebook and Telegram were used to trick new investors into falling victim to the scam.

The syndicate also established wallets, shell companies, and international bank accounts to handle finances. The money generated was also sent back to India using the hawala system, peer-to-peer cryptocurrency transactions, and accommodation entries. A share of the ill-gotten money was also invested in properties in India and abroad. It was reported that the syndicate had been in operation since 2015.

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ED Cracks Down Massive Digital Asset Fraud in India

The ED’s move is in the backdrop of rising instances of digital asset scams. The authorities have cautioned investors to check the websites before investing. A major number of phishing scams involve trust and the promise of quick profits. The ED raided places in December 2025 in Himachal Pradesh and Punjab, linked to a large-scale Ponzi scheme. Key accused Subhash Sharma is an absconder. It has been found that losses of over ₹2,300 crore have been incurred, and the police have recovered ₹4,190 crore.

Experts pointed out the risks involved with investing online. Scammers undertake lucrative schemes and pay incentives to recruit members. Chetu’s operation is intended to break down the network that takes advantage of local and foreign investors. The operation is an indication that the government will toughen regulations on money crimes that involve digital currencies.

India Tightens Crypto Rules Amid Rising Scams

The Indian crypto rules are also becoming stringent to counter rising cases of scams. Starting April 2026, the Income Tax Bill, 2025, ensures that the state has access to emails, cloud storage, social media, and cryptocurrencies. Though the environment is not clear, the use of cryptocurrency in India is rising.

Rankings by Bybit and DL Research World indicate that India is the ninth-largest in crypto transactions. The use of stablecoins is on the rise for transactions and money transfer purposes. Retail investors are increasingly using crypto for daily transactions. A balance is being sought by the authorities in enforcing and promoting innovation. The ED’s action shows that scammers will not outlast regulation for too long.

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