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Fake Crypto Scam in India: Panchkula Police Arrest 3 in ₹3.28 Cr Fraud

Panchkula Police arrested three accused linked to an interstate cyber fraud network after tracing a ₹83.22 lakh fake crypto trading scam through bank transactions, digital wallets, and technical surveillance.

Written By Dishita Malvania
Published 1 hour ago
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Fake Crypto Scam in India Panchkula Police Arrest 3 in ₹3.28 Cr Fraud

The Panchkula Police have arrested three persons in connection with separate cyber fraud cases involving fake cryptocurrency trading, bogus stock market investments, and fraudulent online investment schemes, according to a report by The Indian Express. Two other accused were sent to judicial custody on Friday after their police remand ended.

The arrests were carried out by the Cyber Crime police station in Sector 20 as part of an ongoing investigation into what officials describe as interstate cyber fraud networks operating across Haryana and neighbouring states. Investigators said the accused were tracked down through technical surveillance, analysis of bank transactions, and digital evidence recovered during the probe.

AI Summary
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DCP Amarinder Singh leads the investigation into interstate cyber fraud networks
Accused Vishnu, Surya, and Ajay Kumar allegedly duped victims through fake investments
Commissioner Pankaj Nain warns public to verify investment offers to avoid cybercrime

DCP (Crime and Traffic) Amarinder Singh said the accused revealed details during interrogation about fake bank accounts, SIM cards, digital wallets, money trails, and other associates allegedly involved in the racket. He added that more arrests are likely as the investigation progresses.

₹83.22 Lakh Lost to Fake Crypto Trading Platform

In the first case, police arrested Vishnu alias Billa, a resident of Fatehabad, and Surya, a resident of Hisar, for allegedly duping a victim of ₹83.22 lakh on the pretext of cryptocurrency trading, as per the report. 

According to police, the fraudsters first contacted the victim’s son through social media and convinced him to put money into a fake crypto trading platform. The funds were then routed through multiple bank accounts, UPI IDs, and fraudulent websites to make the money trail harder to trace. A local court remanded both accused to four days of police custody.

The method mirrors a pattern seen repeatedly across the country, where fake platforms display fabricated profits on professional-looking dashboards, allow small initial withdrawals to build trust, and then block victims entirely once larger sums have been deposited. The Crypto Times has reported on nearly identical playbooks in recent cases from Telangana, Andhra Pradesh, and Gujarat.

Retired Army Colonel Cheated of ₹2.34 Crore

In the second case, Ajay Kumar was arrested for allegedly cheating a retired Army colonel of ₹2.34 crore through a fake investment app, WhatsApp groups, and promises of outsized returns in the stock market. 

He was remanded to two days of police custody, while his co-accused, Nishant, was sent to judicial custody after completing his police remand. Police said this case has revealed direct links to an interstate cyber fraud network, and efforts are on to map the full chain of operatives.

Third Case: Retired Lieutenant Colonel Loses ₹10.58 Lakh

In the third case, Sonu, a resident of Hisar district, was arrested for allegedly defrauding a retired Army Lieutenant Colonel of ₹10.58 lakh through a fake investment scheme. After a three-day police remand, he was produced before a court and sent to judicial custody. Police said they are working to identify other members of the network.

Commissioner of Police Pankaj Nain urged the public to verify investment offers thoroughly before transferring money, and warned against schemes tied to cryptocurrency, stock trading, or online investments circulated through social media, WhatsApp, YouTube, and other digital platforms.

Part of a Larger National Pattern

The Panchkula arrests come amid a relentless surge in crypto and investment fraud across India. Over 24 lakh cybercrime complaints were filed on the National Cyber Crime Reporting Portal in 2025, with reported losses totalling ₹22,495 crore, while only ₹60.52 crore of the ₹36,448 crore in cumulative losses reported since the portal’s inception has actually been returned to victims.

The first half of 2026 has offered little relief. As The Crypto Times reported, crypto scam losses in India crossed ₹3 crore in just the first week of May 2026, with cases spread across Ahmedabad, Varanasi, and Hyderabad. Enforcement agencies have stepped up in response. 

Earlier this month, the Enforcement Directorate seized ₹3.35 crore worth of cryptocurrency during raids linked to a ₹14.95 crore fraud involving fake investment platforms and fraudulent work-from-home schemes, with searches conducted at 19 locations across Tamil Nadu, Kerala, and Srinagar under the Prevention of Money Laundering Act.

The targeting of retired defence personnel in two of the three Panchkula cases also underlines a worrying trend of fraudsters going after retirees with substantial savings, a demographic that has featured prominently in recent cyber fraud cases across India.

Investigators in Panchkula are now tracing the money trail across the fake accounts and wallets disclosed by the accused, and further arrests are expected in the coming days.

Also Read: Fake KRO Token: India’s ED Arrests Three in ₹500 Cr Crypto Scam Probe

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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