How Dark Web Syndicates Run Crypto Scams in India

By Dark Crime Diaries | Investigative Report | November 2025

It starts with a message, “Invest ₹1,000, earn ₹5,000 in a week.”

A few screenshots of profits, a Telegram group full of fake success stories, and soon, thousands of people jump in. But within days, the app disappears, the group vanishes, and so does the money.

This isn’t just an online scam; it’s a well-planned global crime network operating through crypto wallets and the dark web.

From Delhi to Himachal, and from Mumbai to Bengaluru, people are losing their savings to fake trading apps, AI investment bots, and crypto tokens that never existed. Behind these screens lie hidden money trails running through China, Southeast Asia, and the Middle East, moving billions without a trace.

The Network Beneath the Screen

A 2025 report by CloudSEK, a top cyber-intelligence firm, exposed how Chinese-run dark web syndicates are using thousands of Indian bank accounts for laundering money.

These accounts, called “money mules,” are opened using stolen or rented identities. Victims transfer money to these accounts through fake investment apps or job portals. The cash is quickly converted into cryptocurrency (mostly USDT or Bitcoin) and sent to foreign wallets.

In one case, CloudSEK found that over 34,000 Indian accounts were linked to a single fake app that moved crores every day. Individually, each transfer looked normal, but together, they formed a massive underground financial web almost impossible to trace.

From Fake Tokens to “Rug Pulls”

Scammers have now gone beyond simple trading apps. Many launch their own crypto coins with glossy websites, influencer promotions, and fake listings on exchanges.

In October 2025, the CBI cracked a ₹100 crore fake-token scam under Operation Chakra-V. The accused launched a new cryptocurrency, pumped up its price with fake trades, and convinced thousands of people to invest.

Once the coin’s price hit its peak, they pulled the rug, sold everything, deleted the servers, and vanished with the money.

Officials say it was a textbook case of “rug pull” where digital dreams turn into financial nightmares.

The Dark Web Command Centre

Most of these scams are planned on dark web marketplaces, hidden parts of the internet used by criminals.

There, everything is available: stolen KYC data, fake SIM cards, software to make fraud apps, and even rented Indian bank accounts for laundering money.

According to Chainalysis, illegal crypto transactions worldwide crossed $40 billion in 2024, and India has become one of the biggest new targets.

Experts say the mix of crypto anonymity and dark web secrecy makes this the perfect tool for global money laundering.

Ordinary People, Heavy Losses

Most victims are common people, not crypto experts or traders.

Like a 23-year-old student from Himachal Pradesh who joined a Telegram group promising “15% profit daily.” After seeing small early returns, she invested ₹50,000 and within days, everything was gone.

In Mumbai and Bengaluru, call-centre employees and freelancers have also lost lakhs through “AI trading bot” apps that looked professional but were fake.

Government data and media reports show that Indians lost nearly ₹7,000 crore to online scams in just the first five months of 2025, and crypto-related frauds make up a big part of that.

Police in several states confirm that most of these apps use foreign servers and encrypted Telegram channels to hide their tracks.

Crackdown and Challenges

The Enforcement Directorate (ED) and CBI have launched major crackdowns this year.

• In February 2025, the ED seized ₹10.63 crore in a Bitcoin mining scam linked to Variable Tech Pte Ltd.

• In August 2025, another ED operation uncovered a ₹260 crore international cyber-fraud network using crypto to move black money abroad.

• The CBI’s Operation Chakra-V exposed fake coins and manipulated exchanges.

But investigators admit that for every network they shut down, new clones appear within weeks.

Fraudsters now use AI-generated faces, voice-cloned calls, and new domain names to keep the scams alive.

Experts say that India still lacks strong laws to deal with rug pulls, token frauds, and crypto money laundering, making it hard to convict the culprits.

The Human and Economic Toll

Behind every crypto scam is a real story: a student’s shattered dream, a family’s lost savings, a retired man’s pension gone.

Many victims never report the fraud out of shame or fear of being mocked. This silence gives criminals more power.

As one investigator told Crime Diaries:

“These gangs run like companies; they have HR, marketing, and customer care. Only difference is, their business is deception.”

Experts warn that if this continues, it could destroy people’s faith in digital finance and slow India’s fintech growth.

The Road Ahead

Cyber-crime officers say the solution lies in awareness and stronger regulation.

Banks and crypto platforms must share fraud data in real time. Strict KYC rules for wallets and exchanges are needed, and people must learn to spot fake apps before investing.

Until then, the golden rule remains:

If an offer sounds too good to be true, it probably is.

In today’s India, one wrong click can open the door to the dark web, where money, identity, and trust vanish in seconds.

Verified Sources

1. NDTV Profit – CloudSEK Report on Chinese Dark-Web Syndicates (Oct 2025)

2. The Statesman – CBI Busts ₹100 Crore Crypto-Token Fraud under Operation Chakra-V (Oct 2025)

3. Business Standard – ED Raids ₹260 Crore Global Cyber-Fraud Case (Aug 2025)

4. India Today – ED Attaches ₹10.63 Crore Assets in Bitcoin Fraud (Feb 2025)

5. Livemint – Indians Lost ~₹7,000 Crore to Online Scams in Early 2025 (Jul 2025)

6. Chainalysis & CoinDesk – Global Illicit Crypto Transaction Data 2024 (~$40 Billion)

7. The Tribune – Himachal Pradesh Reports Spike in Crypto-Fraud Complaints (May 2025)