Crypto scams in India: how they work, how to check an exchange, and what to do if you lose money

AI-generated editorial illustration by CyberShitty. Not a photograph or a document from the organisations named.

Fake trading apps, 'task' jobs paid in USDT, matrimonial matches that turn into crypto tips and cloned exchange sites. What the ED, CBI and I4C have found, why the government will not publish a list of registered exchanges, and where to report.

01 / The short answer

If a stranger, a new match or a 'mentor' on WhatsApp or Telegram asks you to buy crypto, move it to an app they suggest, or pay a fee to withdraw your 'profit', treat it as a scam. Crypto is legal to hold and trade in India, but it has no dedicated regulator, and a registration with the Financial Intelligence Unit is not a licence or a guarantee. If you have already lost money, call 1930 and file at cybercrime.gov.in, which lists 'cryptocurrency crimes' as a complaint type.

02 / The scams investigators keep finding

• 'Task' and part-time job scams paid out in USDT. In a Hyderabad case, the Enforcement Directorate says victims were paid small early 'profits', then asked for 'taxes' before withdrawal. It says ₹285 crore of proceeds went through short-lived mule accounts and that the gang 'frequently purchased USDT (Tether) through peer-to-peer (P2P) transactions on Binance using third-party payments'. How task scams work.
• Fake trading apps and home-made 'coins'. ED cases in 2025 and 2026 include the HPZ Token app, which it says generated around ₹2,200 crore in proceeds, and a Telegram group of self-styled crypto 'influencers' who sold discounted token allocations and stopped delivering, which ED put at about US$35 million. These are allegations in ongoing cases. Fake trading apps.
• Matrimonial and dating matches. I4C issued an advisory on 31 October 2025 about fake profiles on matrimonial sites that use age and income filters to pick well-off targets, build trust over weeks and then push them into crypto 'investments'. Romance and crypto scams.
• Cloned exchange sites and fake support. In a case built around spoofed Coinbase sites pushed up in search results, ED says victims were routed to a fake support number and their crypto was sold through P2P deals. ED's release includes a checklist for spotting spoofed sites.

03 / Is my exchange 'registered'? The government will not say

Since March 2023, crypto platforms serving Indians must register with FIU-India under the anti-money laundering law. In a Lok Sabha answer on 30 March 2026, the Finance Ministry said 54 platforms were registered as of 9 March 2026, and that FIU had directed the takedown of the apps and websites of 53 offshore platforms operating without complying.

It also said FIU has not made the list of registered platforms public, because a public list 'may create the impression that registered entities are licensed, approved, or endorsed by the government' and 'could mislead users into assuming regulatory protection or recourse in case of fraud or loss'. The answer's annexure does name all 54, which makes it the most reliable public snapshot, with its date.

Some platforms appear on both lists: Binance, Bybit, KuCoin and Coinbase were among those blocked and are also on the registered list. So the takedown list is a history of enforcement, not a current ban list.

04 / Selling USDT on P2P can get your bank account frozen

ED's Hyderabad case describes the chain: sellers buy USDT cheaply on one exchange and sell it on a P2P market, where the rupees they receive are sometimes a scam victim's money. When the victim complains on 1930, the account that received the money can be frozen. The CBI posted a warning on 11 September 2026, reported by Crypto Times, that an 'above-market' USDT buyer 'could be using fraud money'.

• Refuse payments from a third party, a different name or several accounts.
• Be suspicious of buyers offering more than the market rate or asking to move the chat to Telegram or WhatsApp.
• Keep records of every trade: the counterparty's details, the payment reference and the chat.

If your account is already frozen, see our guide: Bank account frozen by cyber police.

05 / If you have lost money

1. Call 1930 or file at cybercrime.gov.in straight away. Its FAQ lists 'cryptocurrency crimes' among the complaints it takes. How to report.
2. Save the evidence: transaction hashes, wallet addresses, the app or website address, screenshots of the chats and the UPI or bank references for any rupee payments.
3. If you paid rupees by UPI or bank transfer, tell your bank at once as well. Bank fraud numbers.
4. If the platform is a registered exchange, report the account and transactions to its support through the official app.

Be realistic about recovery. Agencies can and do seize crypto: CBI says it has in-house capability to seize digital assets, and ED has frozen and attached crypto in several cases. But we found no case in ED's 2025–26 press releases where seized crypto was returned to fraud victims.

06 / The second scam: 'recovery' agents

People who have lost crypto are often contacted by 'recovery experts', fake law firms or people claiming to be from an agency, who ask for a fee to trace or unlock the money. The FBI warned about exactly this on 13 August 2025. No genuine agency in India charges you to recover stolen funds. How recovery scams work.

You can practise spotting these on our Scam Lab: the crypto romance demo and the recovery scam demo.

07 / Confirmed vs. reported

Confirmed from official documents: the Lok Sabha answer of 30 March 2026 (54 registered, 53 takedowns, no public list), FIU's notices to 25 offshore platforms on 1 October 2025, the I4C matrimonial advisory, NCRP's crypto complaint category, and the ED and CBI case details, which are the agencies' allegations, not court findings. Reported by media only: the CBI's P2P warning of 11 September 2026. Not available: any official figure for crypto fraud complaints or losses in India.