Instagram Contact Leads to ₹1.25 Crore Crypto Fraud: A Cautionary Tale of Online Scams

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A Cryptocurrency Scam Unfolds on Instagram, Resulting in ₹1.25 Crore Loss

A businessman from the Mahmoorganj area has fallen prey to a cryptocurrency investment scam that originated from a fake Instagram profile, leading to a significant financial loss of over ₹1.25 crore.

The Scam

The victim, Rohit Dodwani, a resident of Jhulelal Nagar, was initially contacted by an individual claiming to be “Mahika Arushi Sharma” on December 14. The scammer shared a phone number and promised unusually high returns through cryptocurrency trading, gradually gaining the victim’s trust.

The accused then sent a login link and guided the victim through the supposed investment process, which involved purchasing USDT (Tether) on a seemingly legitimate online trading platform. Between December 19 and February 9, the businessman made multiple transactions, investing over ₹1.25 crore. The platform displayed notional profits, encouraging the victim to invest further.

The Discovery of the Scam

However, when the victim attempted to withdraw his funds, the request was blocked, and he was informed that an additional fee was required to process the withdrawal. He paid approximately ₹1.25 lakh more, but the withdrawal still did not go through. The scammer then pressured the victim to invest even more money.

After discussing the matter with acquaintances, the victim realized he had been defrauded. The Instagram account and phone number used by the scammer were subsequently deactivated. The victim then filed a complaint with the cyber police.

The Investigation

The investigation is currently underway, with authorities analyzing digital transaction trails, crypto wallet addresses, bank accounts, and IP logs. They are also examining whether the fraud is linked to an inter-state or international cybercrime network.

According to cybersecurity experts, this type of scam typically involves contact through fake social media profiles, promises of unusually high returns, fake trading dashboards showing fabricated profits, repeated demands for “withdrawal fees,” and the sudden disappearance of the fraudsters.

Advisory from the Cyber Police

The cyber police have issued an advisory, cautioning the public to avoid trusting unknown social media investment offers, not to log in through links sent by strangers, and to use only verified and regulated crypto exchanges. They also advise individuals to stop investing immediately if withdrawals are blocked and to report fraud promptly via the 1930 helpline or the cyber crime portal.

As digital investments continue to rise, vigilance remains the most effective safeguard against such financial frauds.