- Gwalior CA allegedly lost Rs 21 crore after a fake Bitcoin and USDT investment scheme.
- Fraudsters used fake profits before demanding taxes and USDT risk margin payments.
- Police froze Rs 2 crore as investigators traced funds through 570 mule accounts.
A 70-year-old chartered accountant from Gwalior has reported losing more than Rs 21 crore in an alleged cryptocurrency investment fraud that unfolded over six months. The case centers on a conversation that began through WhatsApp and expanded into repeated investment requests tied to Bitcoin and USDT.
Investigators said the victim was persuaded to continue transferring funds after receiving an initial payout presented as trading profit. The alleged scheme later escalated with additional demands for taxes and risk margin payments before the victim sought help from authorities. Police have since frozen part of the transferred funds while continuing their investigation into the movement of the money.
WhatsApp Contact Led to Repeated Investments
According to the complaint, the incident began in December 2025 when Ashok Vijayvargiya was contacted on WhatsApp by a woman identifying herself as investment consultant Divya Singh.
She allegedly introduced him to cryptocurrency trading involving Bitcoin and USDT and provided a link for creating an online trading account. After the account was opened, Vijayvargiya began receiving calls from other individuals who encouraged him to increase his investments.
The complaint states that the group gained his credibility by claiming they had generated high returns through cryptocurrency trading. Vijayvargiya also received Rs 1.88 lakh in his bank account, which was presented as investment profit and prompted him to commit larger amounts to what police later described as a fake trading platform.
Withdrawal Attempts Triggered More Payment Demands
When Vijayvargiya attempted to withdraw his funds, individuals posing as trading platform representatives allegedly demanded Rs 10.84 crore as tax before releasing the money.
After contacting Divya Singh, she allegedly told him to pay Rs 5.34 crore and claimed she would cover the remaining balance. Weeks later, another withdrawal attempt reportedly resulted in a fresh demand for 2 lakh USDT, valued at more than Rs 1.92 crore, as risk margin money.
The victim later discussed the matter with friends and clients before concluding that he had likely been defrauded. He then filed a complaint with the Madhya Pradesh State Cyber Police’s Gwalior zonal unit, which registered a case under the Bharatiya Nyaya Sanhita and the Information Technology Act, 2008.
Police Freeze Part of the Funds
Deputy Superintendent of Police Sanjeev Nayan said investigators found that the alleged fraudsters routed the money through multiple layers of mule accounts.
According to the officer, around 570 mule accounts were identified within the first two layers of transactions, with nearly 40% of those accounts opened at banks in southern India.
Police also confirmed that approximately Rs 2 crore connected to the victim’s investments has been placed on hold after multiple accounts were frozen with assistance from the Indian Cyber Crime Coordination Centre (I4C). Authorities said the investigation remains ongoing.
Related: Crypto Scam: How to Document and Report Fraud to Law Enforcement
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