A businessman from Surat, Gujarat, and his nephew have alleged being defrauded of ₹1.43 crore in a cryptocurrency investment scam. The accused, Hiren Kumbhani and Viram Goyani, lured the victims with promises of high returns through a Singapore-based company called Blocky Network.
After shutting down operations and vanishing, the fraudsters left the victims empty-handed. Following a formal complaint, the case was transferred to the Economic Branch of Surat Police, which suspects the scam may be part of a larger network targeting unsuspecting investors. Authorities have issued warnings as cryptocurrency scams continue to rise across India.
Details of the Fraud: A Costly Mistake
Mukeshbhai Savani, an embroidery factory owner from Surat, was introduced to the alleged fraudsters by another businessman in October 2022. The accused presented themselves as representatives of Blocky Network, a Singapore-based cryptocurrency investment platform that promised returns ranging from 15% to 30%.
Initially cautious, Mukeshbhai invested small amounts and saw encouraging returns. Convinced of the scheme’s legitimacy, he invested ₹86.6 lakh over several months. His nephew, similarly persuaded by the promise of lucrative profits, invested ₹56.65 lakh into the same platform.
The fraud unravelled when Mukeshbhai and his nephew attempted to withdraw their earnings but found that the fraudsters had shut down their operations and disappeared without a trace. Realising they had been duped, the victims filed a complaint with the Surat Crime Branch. The case has since been handed over to the Economic Branch of Surat Police for further investigation into potential links to a larger criminal network.
Cryptocurrency Scams: A Growing Threat
This case is not an isolated incident but part of a worrying trend in India’s cryptocurrency landscape. Gujarat has seen several similar scams in recent years, with fraudsters exploiting the growing interest in digital assets among investors. According to recent reports, scams involving cryptocurrency networks have defrauded thousands of individuals across India, with losses amounting to hundreds or even thousands of crores.
In one high-profile case involving BitConnect—a now-defunct cryptocurrency platform—Indian enforcement agencies seized assets worth ₹1,646 crore linked to fraudulent activities. These incidents highlight how scammers use sophisticated tactics to exploit gaps in awareness and regulation in emerging financial markets like cryptocurrency.
Surat Police officials have urged citizens to exercise caution when approached with investment opportunities promising unrealistically high returns. “Fraudsters often prey on trust and ignorance,” said an officer from the Economic Branch investigating this case. “We advise people to verify investment platforms thoroughly and avoid schemes that guarantee profits.”
Expert Advice: How to Avoid Cryptocurrency Scams
Financial experts and crypto forensic specialists emphasise vigilance when dealing with cryptocurrency investments. They recommend identifying common red flags such as unsolicited offers from unknown individuals, promises of guaranteed returns, or high-pressure tactics urging immediate investments.
Key tips from experts include:
- Research Thoroughly: Verify the legitimacy of investment platforms by checking their registration details and reviews online.
- Avoid Unsolicited Offers: Be wary of cold calls or messages offering exclusive investment opportunities.
- Understand Risks: Cryptocurrency markets are volatile; no legitimate investment can guarantee fixed profits without risk.
- Consult Professionals: Seek advice from certified financial advisors before committing large sums of money.
Crypto forensic expert Rajesh Mehta advises victims who suspect fraud not to confront scammers immediately but instead collect evidence discreetly while maintaining communication for investigative purposes.
The Logical Indian’s Perspective
This incident underscores the pressing need for financial literacy and regulatory oversight in India’s rapidly growing cryptocurrency market. As digital investments gain popularity, scammers are exploiting gaps in knowledge and trust among consumers. It is imperative for individuals to educate themselves about potential risks and for authorities to strengthen mechanisms that protect investors from fraudulent schemes.
At The Logical Indian, we believe that fostering awareness is key to empowering consumers against deceptive practices. This story serves as a reminder that financial decisions should be made with caution and due diligence—especially in emerging markets where regulations are still evolving.
How can we collectively promote financial literacy and hold fraudulent actors accountable? Share your thoughts below! Let’s work together to ensure safer investment practices for all consumers!
