Legal information notice: this article provides general information and isn't a substitute for advice from a qualified lawyer.
You are shown a crypto “platform” with rising balances, a “mining pool”, or a “guaranteed monthly return”, and you send money in bitcoin, USDT or by UPI. Later the balance cannot be withdrawn without paying “tax”, “gas fees” or a “verification deposit”. Crypto investment fraud combines an old scam script with a payment method that is harder to reverse — which makes fast, well-documented reporting even more important.
Buying, holding and selling virtual digital assets is not banned in India, but crypto is not legal tender and there is no single regulator protecting crypto investors the way SEBI protects securities investors. Gains are taxed at a flat 30%, with 1% TDS on most transfers, and service providers dealing in virtual digital assets are required to register with the Financial Intelligence Unit (FIU-IND) under anti-money-laundering rules. The practical point for fraud victims: a platform being “crypto” gives you no automatic complaint route, so the criminal-complaint route below is the main one.
A new “fee” is not a route to your money; it is the next stage of the fraud.
Note dates, amounts, wallet addresses, transaction hashes, exchange names, and any UPI IDs or bank accounts you paid. Screenshots of the platform’s balance and messages help.
If you paid by bank or UPI, report it at once. If you moved crypto through an exchange, report the transfer to that exchange’s support so it can flag the destination.
Use cybercrime.gov.in or call 1930 and include wallet addresses and hashes along with bank details.
Keep chats, profiles, website addresses, app details and any “agreement” or certificates you were sent. Do not delete the app or wallet history.
Be careful with anyone who contacts you after the loss promising to trace or retrieve your crypto for an advance fee. Genuine tracing is done by investigators working on a complaint, not by individuals who approach victims.
| Market Loss | Fraud |
|---|---|
| Price falls on a real, working exchange | Balance cannot be withdrawn at all |
| You can withdraw what remains | New fees or taxes demanded before withdrawal |
| No promised returns | Fixed guaranteed returns or 'insider' access |
| Platform and company are traceable | Anonymous operators, copied branding, cloned website |
No. Reporting to your bank, an exchange, and the cyber crime portal is free.
You can file the complaint yourself. A lawyer is helpful for large losses, cross-border elements, or if the case involves a company or an exchange you want to pursue.
Need professional legal help with this?
Find a Lawyer on VidyodaySee our guides on crypto scams in India, investment and trading scams, and Ponzi schemes.
Holding and trading virtual digital assets is not banned, but they are not legal tender, are taxed heavily, and lack the investor protections that apply to regulated securities.
It is difficult. Speed matters: report to your bank, any exchange involved, and 1930 immediately, and provide wallet addresses and hashes.
SEBI’s investor protection tools, such as SCORES, are meant for securities market intermediaries. For crypto fraud, the main route is a criminal complaint.
No. A demand for advance tax, fees or a verification deposit on a platform is a common scam tactic.
After you lose money, someone offers to retrieve it for an upfront fee. Treat unsolicited recovery offers as another fraud.
Dates, amounts, wallet addresses, transaction hashes, exchange names, UPI IDs or bank accounts paid, and screenshots of the platform and chats.
This article is for general information only and does not constitute legal, tax or financial advice. Crypto rules and tax treatment change — verify current requirements before transacting.
