Indian police have busted a work-from-home scam that used cryptocurrency to launder stolen funds, arresting five people, including a woman known as Delhi’s ‘Crypto Queen’.
Local reports reveal the group operated a Telegram-based network that deceived victims by offering fake online tasks. They extracted payments under the guise of unlocking higher rewards, then routed the money through unregulated crypto channels.
The scheme came to light when a 29-year-old woman from Delhi’s Burari area reported being duped of over ₹17.29 lakh (around $20,000) while searching for online job opportunities.
How did the scam work?
The Delhi Police have uncovered disturbing details about a work-from-home scam in which a young woman was promised high commissions for completing basic digital tasks. What began with small, seemingly legitimate payouts quickly escalated, with the victim being pressured into making repeated payments in hopes of larger returns.
Unbeknownst to her, the fraudsters also exploited her identity to take out personal loans totaling ₹8.8 lakh from various banks.
According to investigators, the stolen funds were routed through a network of “mule” bank accounts before being converted into USDT (Tether), a U.S. dollar-pegged stablecoin. These crypto transactions were orchestrated through encrypted platforms like Telegram and WhatsApp, often using international numbers to stay under the radar.
At the center of the operation was 19-year-old Krish, who managed fund transfers. He procured bank account details and UPI IDs from accomplices and passed them on to crypto buyers. The stolen money was then either withdrawn in cash or handed over for cryptocurrency conversion.
Nidhi Agarwal, dubbed the “Crypto Queen” by her associates, played a pivotal role in laundering the funds. Operating without any official license, she purchased USDT from unregulated sources and sold it for profit. She also used international numbers and online platforms to avoid detection, authorities said.
Two other accused, Deepa and Gaurav, were responsible for recruiting individuals willing to lend their bank accounts for fund transfers and also helped in handling cash movements.
Indian Doctor Scammed Out of Over $115,000 in Cryptocurrency Fraud
In a separate incident reported over the weekend, a 56-year-old doctor from Kannammoola was duped out of ₹1.01 crore (approximately $115,000) in a cryptocurrency romance scam.
The fraud took place between January and May this year, beginning when a woman posing as a fellow doctor contacted the victim on WhatsApp. She claimed to have earned significant profits through crypto trading and encouraged him to invest.
Initially, the doctor received impressive returns, which boosted his confidence and led him to invest more. However, when he tried to withdraw his funds, he was informed that he needed to pay 30% of the profit as U.S. income tax—effectively blocking his access to the money.
No crypto regulations in India
These incidents have once again highlighted the urgent need for a comprehensive regulatory framework for cryptocurrencies in India. In the absence of clear regulations, scammers are exploiting loopholes and operating with minimal oversight.
Although the Supreme Court overturned the Reserve Bank of India’s banking ban on cryptocurrencies in 2020, progress on establishing concrete rules for the sector has been sluggish. The RBI remains firmly opposed to private cryptocurrencies, citing risks to monetary policy and overall financial stability.
In response, Indian tax authorities have stepped up enforcement efforts. The Income Tax Department has launched several initiatives to crack down on crypto-related tax evasion.
Currently, crypto gains in India are taxed at a flat rate of 30% under Section 115BBH of the Income Tax Act, along with a 1% TDS on each transaction. While this taxation framework has introduced some degree of transparency, the lack of licensing, regulatory oversight, and consumer protection mechanisms continues to create fertile ground for fraud.
