India has once again topped the global crypto adoption list in 2024, marking the second consecutive year of dominance in this space. The number of cryptocurrency users in the country continues to grow rapidly. However, alongside this surge in popularity, there has also been a noticeable rise in crypto-related crimes.

In a recent case, a regional media outlet in Madhya Pradesh reported that the Central Bureau of Investigation (CBI) carried out raids at more than a dozen locations across India. These raids were part of an investigation into a significant cryptocurrency scam.

The raids, conducted at seven locations in Madhya Pradesh and other parts of India, led to the discovery of several devices, digital evidence, approximately $39,000 in cryptocurrency, and ₹34 lakhs in cash. The CBI has detained over six individuals suspected of running a crypto Ponzi scheme, which lured innocent investors with promises of high returns.

The CBI has filed a case against the suspects for operating an organized cybercrime ring. The individuals involved hail from various parts of the country, including Delhi, Hazaribagh, Bathinda, Ratlam, Valsad, Pudukkottai, and Chittorgarh. According to the investigation, they ran fake investment schemes disguised as legitimate and government-registered businesses to deceive investors. (Source)

Crypto Crimes Hindering India’s Blockchain Growth
India’s dominance in crypto adoption was highlighted in the 2024 annual report by Chainalysis, which also predicted that the number of crypto users in India would reach a new milestone by the end of 2025.

However, experts have warned that the rapid rise in illicit crypto activities could slow down this growth. Reports suggest that the increasing number of crypto-related crimes is fueled by the government’s strict regulatory stance and the lack of investor awareness, which scammers exploit.

While India continues to lead in crypto adoption, addressing these criminal activities is essential for sustaining the country’s blockchain and cryptocurrency ecosystem.

This article does not provide investment advice. All investments involve risk, so readers should do their own research before deciding.