Hyderabad Cyber Police Arrest Two in Rs.12.3 Lakh Fake Crypto Investment Scam
Hyderabad cybercrime police arrested two men, Ravi Kumar Lal and Shivendra Ashok Singh, linked to a fake crypto investment scheme that defrauded a 53‑year‑old resident of Rs. 12.3 lakh between August 13 and 28. Operating from Vash, Navi Mumbai, the suspects used unsolicited WhatsApp messages and sham firms (Flames Alliance, Munoth Capital Investment Limited) to direct victims to doctored trading platforms showing fabricated profit dashboards. Victims were coaxed to transfer funds into mule bank accounts; small withdrawals were initially allowed to build trust before access was blocked. Police seized four mobile phones and three cheque books during raids and say the duo are tied to multiple interstate schemes, including other cases involving losses of over Rs. 26 lakh. Authorities reported this modus operandi mirrors more than 50 similar cases across India in 2025, with recorded collective losses exceeding Rs. 100 crore. Investigators highlighted factors that facilitate these scams: anonymity of digital wallets, lax oversight of crypto platforms and layered bank transfers. Police warned investors to avoid sharing OTPs or APKs that can redirect authentication, verify advisers through SEBI, report fraud promptly and seek certified financial advice. For traders: the arrests disrupt one network but underline persistent operational risks in an under‑regulated crypto ecosystem — expect continued enforcement actions and heightened scrutiny, but no direct price drivers for major crypto tokens.
Neutral
This story describes a criminal enforcement action against operators of a fake crypto investment scheme rather than news about a specific cryptocurrency token or market-moving regulation. Arrests and seizures increase short-term risk perception among retail investors and may prompt localized withdrawals or caution, but they do not directly affect the price fundamentals of major cryptocurrencies. In the short term, traders may see heightened volatility in small, fraud‑linked tokens or platforms mentioned in similar scams; exchanges and payment rails servicing India could face increased scrutiny. In the long term, repeated scams and large reported losses (50+ cases, >Rs.100 crore) could accelerate regulatory clarity and stronger KYC/AML enforcement, which may be positive for institutional confidence but neutral to mixed for token prices. Overall, the immediate market impact on primary crypto assets is limited, so the classification is neutral.