One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

My client Rahul Sharma, a software engineer from Koramangala, Bangalore, contacted me after falling victim to a cryptocurrency trading scam. He had saved ₹85,000 and decided to purchase USDT (a cryptocurrency) through a peer-to-peer platform similar to Binance P2P. He found a seller named Deepak Gupta who claimed to be from Mumbai and offered competitive rates for USDT trading.

Rahul transferred ₹85,000 to Deepak’s bank account as per the trading instructions. However, after the payment was made, the USDT tokens were never credited to Rahul’s wallet. The order status remained “incomplete” on the platform. When Rahul contacted Deepak, he claimed that his USDT was “stuck” due to technical issues and promised to resolve it within 24 hours. The platform’s customer service later confirmed that Deepak had indeed received the payment but had not released the cryptocurrency. Multiple attempts to contact the seller failed as he stopped responding to messages and calls.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Immediately document all communications, screenshots, and transaction records. File a cyber crime complaint with your local police station within 24-48 hours. Contact your bank to flag the transaction and request a chargeback if payment was made via UPI or net banking. Report the incident to the Reserve Bank of India’s cyber fraud helpline and the platform where the transaction occurred.

Applicable Sections of Law

Such cryptocurrency fraud cases fall under multiple provisions of the Bharatiya Nyaya Sanhita (BNS) 2023. Section 318 (Cheating) applies when someone deceives another to deliver property. Section 316 (Criminal breach of trust) is relevant when the accused fails to return money received for a specific purpose. Section 319 (Cheating by personation) may apply if false identity was used. Under the Bharatiya Nagarik Suraksha Sanhita (BNSS) 2023, Section 173 allows for investigation of such economic offences, while cyber fraud aspects fall under the Information Technology Act 2000.

Relevant Legal Precedents

Various High Courts have established that cryptocurrency transactions, despite regulatory ambiguity, constitute valid contracts and fraud in such transactions is punishable under existing laws. Courts have held that failure to deliver promised cryptocurrency after receiving payment constitutes cheating and criminal breach of trust. The principle of “money received for specific purpose must be utilized for that purpose only” has been consistently upheld in similar financial fraud cases.

If you need specific judgement references for your case, you can contact Adv. Sudhir Rao on his helpline numbers for detailed legal research and citations.

If You Are the Complainant

• File FIR immediately at the nearest police station with cyber crime cell
• Gather all digital evidence including chat screenshots, transaction receipts, and platform communications
• Submit bank statements showing the transferred amount
• File complaint with National Cyber Crime Reporting Portal (cybercrime.gov.in)
• Approach consumer court if the platform failed in its duty to protect users

If You Are the Victim

• Do not panic or make additional payments to recover your money
• Immediately freeze your bank accounts if you suspect further unauthorized access
• Change all passwords related to your crypto accounts and banking
• Report to your bank’s fraud department within 24 hours
• Seek psychological counseling if the financial loss is causing significant stress

How the Police Behave in Such Cases

Police typically treat cryptocurrency fraud cases seriously, especially when significant amounts are involved. They may initially show reluctance due to technical complexity but usually register FIR under cyber crime sections. Investigation involves technical analysis of blockchain transactions, bank record scrutiny, and coordination with platform operators. Recovery chances improve significantly with prompt reporting and comprehensive evidence submission.

FAQs People Normally Have

Can I recover my money? Recovery is possible if the fraudster’s bank accounts are identified and frozen quickly. Success rates are higher when reported within 24-48 hours.

Is cryptocurrency trading legal in India? While not explicitly banned, it exists in a regulatory grey area. However, fraud in crypto transactions is still punishable under existing laws.

Will police take my complaint seriously? Yes, especially for amounts above ₹50,000. Cyber crime cells are increasingly equipped to handle such cases.

Should I continue using P2P platforms? Exercise extreme caution, verify seller credentials, use platform’s escrow services, and never deal with unverified users.

What Evidence Is Required?

• Screenshots of all platform communications and order details
• Bank statements showing money transfer
• Platform transaction history and incomplete order status
• Mobile numbers and bank account details of the fraudster
• Email communications or platform messages
• Identity verification documents if shared during trading
• Witness statements from others who may have dealt with the same fraudster

How Long Will the Investigation Take?

Cyber crime investigations typically take 6-12 months depending on case complexity and cooperation from platforms and banks. Cases involving cryptocurrency require additional technical expertise, potentially extending timelines. However, if bank accounts are quickly frozen and substantial evidence is provided, preliminary investigation and charge sheet filing can occur within 3-6 months.

Advocate Sudhir Rao, Supreme Court of India