Binance Helps Delhi Police Bust Crypto Scam in India

• Binance and Delhi Police collaborate to shut down the fraudulent “M/s Goldcoat Solar” scheme.
• Scammers misled investors by falsely claiming ties to India’s renewable energy initiatives.
• Over $100,000 in USDT was seized during the crackdown.

The Binance crypto exchange teamed up with Delhi Police in the capital region of India, to shut down a complex fraud operation run by “M/s Goldcoat Solar,” which falsely claimed involvement in India’s renewable energy expansion. An X thread by Inc42 reported the crackdown led to multiple arrests and the seizure of over 100,000 USDT in cryptocurrency assets.

Scam Targeted India’s Renewable Energy Goals

The fraudulent scheme operated under the guise of the entity “M/s Goldcoat Solar,” deceiving investors by claiming it had secured rights from India’s Ministry of Power to contribute to the country’s renewable energy expansion.

By falsely aligning itself with India’s goal to increase solar power capacity to 450 gigawatts (GW) by 2030, the scam promised high returns on investments, attracting numerous victims.

The scammers primarily relied on social media platforms to promote their false claims. They impersonated government officials and prominent dignitaries to create an illusion of legitimacy. Victims were also shown falsified earnings reports from supposed past investors, reinforcing “trust” in the scheme.

Fraudulent SIM Cards and Complex Money Trail

Investigators discovered the perpetrators were using multiple SIM cards activated under fake identities. These SIM cards, some of which were distributed internationally, helped conceal the fraudsters’ identities.

Additionally, the scam’s proceeds were funneled through various bank accounts, with some of the funds converted into cryptocurrency, complicating the investigation.

Binance’s Role in Supporting the Investigation

The largest centralized exchange, Binance, played a key role in the investigation. Binance’s team held virtual meetings with Delhi Police to provide analytical support, helping track the money flow across accounts and cryptocurrency wallets.

Jarek Jakubcek, Binance’s head of law enforcement training, emphasized the success of these collaborations, stating, “We are committed to assisting law enforcement agencies in financial investigations and combating financial crimes.”

This operation follows Binance’s re-entry into the Indian market after registering as a reporting entity with the Financial Intelligence Unit (FIU-IND) in August. This registration ensures compliance with the Prevention of Money Laundering Act (PMLA) and the Virtual Digital Assets (VDA) taxation framework, positioning Binance for continued growth in India’s crypto industry.