- Thane Police establish the first cryptocurrency investigation cell in India.
- Crypto fraud in India jumped 67 percent in 2024-25, prompting regulation.
- New cell powers combine oversight, forensic tracing, and prevention strategies.
India has created its first dedicated Cryptocurrency Investigation Cell in Thane. The unit will track illicit transactions and dismantle schemes that use crypto to launder stolen funds. Officials said the goal is to strengthen India crypto oversight as adoption spreads and criminals exploit anonymity to evade traditional monitoring.
Fraud Surges and Demands a State Response
The scale of crypto fraud in India has grown impossible to ignore. Between April 2024 and January 2025, authorities logged over ₹4,245 crore (around $500 million as of September 29, 2025) in losses across 2.4 million incidents. That represented a 67% increase from the previous year. The trend matches global patterns, with thefts surpassing $2.17 billion by mid-2025, including the record $1.5 billion ByBit hack.
Closer to home, enforcement has uncovered multiple scams. Delhi police arrested Naresh Kumar for a ₹34 lakh fraud by impersonating under the name ‘Coin-Ex Crypto Trading.’
In Andhra Pradesh, the “digital arrest” scheme drained millions from unsuspecting victims. Other cases tied to WazirX and CoinDCX showed how widely crypto crimes exploit popular exchanges and casual investors alike.
Related: India Avoids Full Crypto Regulation, Citing Fear of Legitimacy and Systemic Risks
Building a System for Fraud Detection and Prevention
The India government is now moving from reaction to prevention. The Department of Telecommunications and the Financial Intelligence Unit of India now share fraud alerts in real time. That coordination has blocked more than 2.84 crore fake mobile connections, stopping potential losses worth ₹140 crore.
Related: A “Regulate, Not Ban” Stance on Crypto Newly Emerges from India’s Parliament
Exchanges now have to face and are answerable of new accountability. Every platform must undergo mandatory cybersecurity audits to remain compliant with financial intelligence rules. Meanwhile, the Reserve Bank of India will introduce two-factor authentication for all digital payments starting April 2026. That requirement aims to choke off unauthorized transfers and tighten the noose on scammers who exploit weak entry points.
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