Authorities in Assam, India, have dismantled a large-scale crypto scam that defrauded over 2,000 victims, leading to $2.4 million in losses. The fraudulent operation, known as RSN Crypto, promised investors lucrative returns through a crypto-based game, luring unsuspecting residents from Assam and neighboring Meghalaya into the scheme.
In a late-night operation on Sunday, the Assam police arrested three key suspects—Asadul Islam, Hashanur Zaman, and Kobad Ali Mollah—all accused of orchestrating the scam. Investigators revealed that the RSN Crypto platform was designed to appear legitimate, using fake promotions and false claims of high returns to persuade victims to invest their money.
The fraud was primarily targeted at local residents, with many victims believing they were participating in a genuine blockchain-based investment opportunity. However, once significant funds were collected, the operators allegedly siphoned the money, leaving investors unable to withdraw their funds.
Investigation and Further Actions
Authorities investigating the RSN Crypto scam uncovered that each victim was tricked into investing at least $610 (₹50,000). The total amount misappropriated is estimated to be between $1.2 million and $2.4 million (₹10-20 crore), making it one of the largest crypto frauds in the region.
Despite the arrests of the three individuals, the alleged mastermind, Hekmot Ali Sarkar, remains at large. Law enforcement officials have confirmed that efforts are actively underway to track and apprehend him, as the scam’s reach appears to be more extensive than initially believed.
Investigators revealed that the scammers used popular Indian online payment platforms such as Paytm and PhonePe to collect funds from victims. Once received, the money was converted into USDT (Tether) on cryptocurrency exchanges and then transferred to international accounts, making recovery efforts more complex.
Further technical analysis traced the fraudulent website behind RSN Crypto back to China, with evidence showing it was hosted on Amazon servers. Authorities believe this cross-border element may indicate the involvement of an organized network of cybercriminals, rather than just a local scam.
During the raid, investigators seized eight mobile phones, two laptops, and eleven SIM cards, all containing crucial evidence related to the fraudulent activities. It was also discovered that the scammers were renting bank accounts from other criminals across India, further complicating police efforts to track and freeze the stolen funds.
India Ramps Up Crypto Fraud Crackdown Amid Rising Ponzi Scams
The RSN Crypto scam is just one of many fraudulent operations that have recently come under intensified scrutiny by Indian authorities, as the country grapples with a surge in crypto-related Ponzi schemes preying on investors. Law enforcement agencies have been stepping up enforcement efforts, targeting major crypto frauds that have defrauded thousands of victims across India.
In a nationwide crackdown on crypto fraud, the Indian Central Bureau of Investigation (CBI) recently conducted raids across multiple locations as part of an ongoing investigation into the $800 million (₹6,600 crore) GainBitcoin scam—one of the largest crypto Ponzi schemes in India’s history. The scheme promised investors massive returns on Bitcoin investments but ultimately collapsed, leaving thousands with devastating losses.
Authorities have also arrested Ravi Mahaseth, managing director of Coin ZX, in Mumbai, for allegedly defrauding investors out of $23 million (₹200 crore). Coin ZX operated under the guise of a legitimate crypto investment platform, luring users with promises of high returns, only to halt payouts after a few months.
In another major enforcement action, India’s Directorate of Enforcement (ED) seized approximately $190 million in crypto assets tied to the infamous BitConnect Ponzi scheme. The agency also confiscated a luxury Lexus SUV and $15,500 in cash.
Quick Facts
- Indian Police have dismantled a large-scale crypto scam known as RSN Crypto, that defrauded over 2,000 victims, leading to $2.4 million in losses.
- Each victim invested a minimum of $610 (₹50,000), with the total fraud amount estimated at $1.2 million to $2.4 million (₹10-20 crore).
- The scam’s mastermind, Hekmot Ali Sarkar, is still at large, with authorities actively pursuing his arrest.
- The RSN Crypto website was traced back to China, hosted on Amazon servers, suggesting potential cross-border involvement.
