- Rajasthan man lost ₹17.71 lakh to a fake crypto investment; bank manager and accomplice arrested by police.
- Funds recovery hinges on fast reporting to 1930 to help freeze mule accounts before the funds are converted.
- Once money moves across accounts or turns into crypto, tracing gets harder, limiting recovery chances.
A Rajasthan man recently lost ₹17.71 lakh (approximately $18,600) in a cryptocurrency scam after being targeted by online fraudsters. The case highlights the growing threat of sophisticated crypto scams in India, including “pig butchering” and fake crypto trading platforms that lure victims through social media with promises of high returns. The key question for victims is whether stolen crypto funds can still be recovered.
How a Rajasthan Man Lost ₹17.71 Lakh in a Crypto Investment Scam
Mukesh Kumar from Gharsana, Rajasthan, lost ₹17.71 lakh in a crypto investment scam after a woman contacted him on Facebook on April 16 and shifted the conversation to WhatsApp. She directed him to TrustMyCoin.com, where he deposited funds. Police later traced the money to mule bank accounts linked to multiple cyber frauds.
Can Victims Recover Money Lost in Crypto Scams in India?
Recovery is possible in some cases, but it is far from guaranteed and depends heavily on speed, the stage at which funds are intercepted, and the quality of evidence. The most vital step is to reach the national cybercrime helpline 1930 immediately after the fraud has been detected, preferably within the first hour or few hours of the fraud.
This triggers an alert through the Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS), allowing banks to place a temporary freeze or lien on the receiving accounts. Victims should also register a comprehensive complaint on the National Cyber Crime Reporting Portal, cybercrime.gov.in, and get a 14 digit acknowledgment number. Parallel written intimation to one’s own bank with transaction IDs (UTR numbers) is also essential.
What Evidence and Transaction Trails Matter Most?
In a crypto investment scam, full evidence assists police and banks in following the funds from the victim’s account to receiving accounts and further transfers. The most important records include UTR numbers, UPI transaction IDs, bank statements, payment screenshots, WhatsApp chats, Facebook profiles, phone numbers, website links, wallet addresses and blockchain transaction hashes.
In the Rajasthan case, records linking the Facebook contact “Soni Sharma” to WhatsApp and TrustMyCoin.com could help establish how the ₹17.71 lakh was transferred. Victims should also keep the 1930 acknowledgment, NCRP complaint number, communication records and a chronological list of all payments made with date, amount and recipient information. Bank and UPI trails are significant as the investigators may be able to identify and freeze funds in the banking system.
Why Recovery Gets Harder Once Funds Move Through Multiple Accounts
Once stolen money moves through multiple mule accounts, tracing and recovery become more difficult. Fraudsters frequently transfer money between accounts rapidly to establish a longer money trail, providing the investigators with more transactions to trace before they can freeze the remaining money. The risk of losing track of the money increases with every transfer.
In the Rajasthan case, ₹1 lakh was withdrawn from an ATM in Kishangarh, while the remaining funds were transferred through UPI. If the money is converted to USDT and transferred to private wallets, banks and crypto exchanges might have to be involved in making the investigation and investigators might have to use blockchain analysis to track the money. The more funds are moved from the original account, the more difficult it will be to freeze and recover the funds.
Related: Crypto Scam: How to Document and Report Fraud to Law Enforcement
Related: Canacona Crypto Scam Victim Faces Bank Freeze Over Diverted Funds
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