- CBI arrests three suspects over an alleged Bitcoin ATM scam targeting US citizens.
- 203.30 BTC worth over $6.5 million was allegedly received by Saurabh Rana’s crypto account.
- About 30 digital devices were seized as investigators trace crypto wallets and the wider network.
A fake warning about hacked computers turned into a massive Bitcoin ATM scam targeting senior US citizens. The victims were then forced to send money via crypto ATMs. While the incident happened in 2022, the case has now reached India, with the CBI arresting three alleged members of the scam network.
US Citizens Tricked into Bitcoin ATM Payment
According to the latest reports, the Bitcoin ATM scam began with a simple phone call or email. The scammer contacted the victims, posing as Microsoft employees. They told older individuals that their computers had been hacked, with their bank accounts at risk. As a safety measure, they were asked to move their funds into Bitcoin ATMs.
How the Bitcoin ATM Scam Led Investigators to India?
Later, the Bitcoin ATM scam revealed an Indian connection. When the US victims reported the scam to authorities, the CBI was alerted and began tracking how the money moved after the victims deposited cash through kiosks.
The agency noted that the stolen funds were later converted to crypto. It was moved through multiple crypto wallets before reaching accounts allegedly tied to the suspects. As the CBI noted, the money was then routed into the Indian banking system. Thus, the CBI was able to connect the case with a syndicate allegedly operating from Punjab and Delhi. The agency arrested three suspects in August, including the alleged mastermind Saurabh Rana.
Crypto Trail Links US Victim to India Suspect
Interestingly, the CBI stated that the crypto trail helped the agency to connect at least one US victim directly to Saurabh Rana’s account. During Rana’s bail hearing, the agency told the court that the funds deposited by victim Joanne Maalouf into the Bitcoin ATM on December 13, 2022, were then transferred to an account linked to Rana.
Further, the CBI stated that Rana’s Binance account was linked to his Aadhaar card and received a significant portion of the alleged scam proceeds. Reports claim that the account received about 203.30 BTC, worth around $6.53 million (Rs 50 crore) at that time. The agency also added that Rana managed his crypto exchange account via a Delhi-based IP address.
Reportedly, one of the key pieces of evidence that the investigators found was the WhatsApp conversations between Rana and the other accused. The chats had hints and evidence of his alleged involvement in the Bitcoin ATM scam.
Three Arrests in Bitcoin Scam
Following the alert, the CBI carried out vigorous searches across India, especially in parts of Delhi, Ludhiana and Mohali. During these searches, the agency arrested Saurabh Rana and Jappandeep Singh in Ludhiana. Later, Indermohan Singh was arrested in Mohali.
The officials argued that Mohali’s flat, which was owned by Rana’s father, was used to run the Bitcoin ATM scam. While more people are likely to be involved in the scheme, most of them are still unknown or unfound.
The CBI’s searches also helped recover a large amount of potential digital evidence. The agency seized about 30 electronic devices, including mobile phones and laptops. Now, the investigators are examining the data, in addition to probing crypto wallets and digital records.
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Notably, the above-mentioned case highlights the rising use of Bitcoin ATMs in impersonation and tech scams. According to the US Federal Trade Commission (FTC), people lost more than $110 million via crypto ATM scams in 2023. This marks a 10x rise from the losses reported in 2020. In the first six months of 2024 alone, the losses were reported at $65 million.
As highlighted in the latest case, older citizens were the main targets in most of the Bitcoin ATM hacks. People aged 60 and above faced more losses in crypto ATM attacks than younger people.
Related: Bitcoin Depot Files for Chapter 11 as Crypto ATM Pressure Intensifies
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