If you are stuck in such a situation, here is what to do.

Mr. Rohan Sharma, a resident of Shantipur, found himself in a precarious legal situation after facilitating an introduction between an acquaintance, Sameer Verma, and a cryptocurrency buyer, Vikram. The transaction involved Sameer directly sending 2500 USDT to Vikram. Mr. Sharma’s role was merely to connect the two parties and he was not otherwise involved in the specifics of the exchange.

The situation escalated when Sameer alleged that a payment of ₹1.5 lakh was put on hold by Vikram’s bank, with an additional ₹1.8 lakh remaining unpaid. Following this, Sameer visited Mr. Sharma’s family residence and issued threats, stating that he would send a group of men to their home if the alleged dues were not settled. He further claimed that the original owner of the USDT had political connections, implying they were above the law. Mr. Sharma grew suspicious as Sameer refused to connect him or the authorities with Vikram or the supposed original owner. Worried about the threats and the ambiguous legal standing of such crypto transactions in India, Mr. Sharma sought guidance on how to protect himself and his family.

Advice in such cases

When you find yourself in a situation involving financial disputes mixed with threats, it is crucial to act strategically and cautiously. Here are the immediate steps you should consider:

• Document Everything: Keep a detailed record of all communications, including dates, times, and the content of conversations, messages, and calls. If you receive threats, note down the exact words used, who was present, and where it happened.
• Cease Direct Communication: Avoid engaging in arguments or further discussions with the person making threats. Do not make any promises or admissions. Let all future communication be handled by your legal counsel.
• Preserve Evidence: Save all text messages, emails, call recordings, and screenshots related to the transaction and the subsequent threats. This digital evidence is invaluable.
• 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 of 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.

Applicable Sections of Law

The situation described involves several potential criminal offenses under Indian law. The primary legal framework to consider is the Bharatiya Nyaya Sanhita, 2023 (BNS).

• Section 351 of the BNS (Criminal Intimidation): Threatening someone with injury to their person, reputation, or property is a criminal offense. The threats made by Sameer to send people to Rohan’s house fall directly under this section.
• Section 326 of the BNS (Extortion): If someone intentionally puts you in fear of injury to compel you to deliver any property or valuable security, it amounts to extortion. Sameer’s demand for money under threat could be construed as an attempt to extort.
• Section 318 of the BNS (Cheating): While the primary issue is threats, if it is discovered that Sameer or Vikram had dishonest intentions from the outset of the transaction, provisions related to cheating could apply.
• Information Technology Act, 2000: Since the transaction and communication likely occurred through electronic means, relevant sections of the IT Act can be invoked, especially concerning electronic records and evidence.
• Prevention of Money Laundering Act, 2002 (PMLA): The legal status of cryptocurrency is complex. While not illegal, transactions are under the scanner of enforcement agencies for potential money laundering. This adds a layer of complexity that requires expert legal handling.

If you are the complainant

If you are the one being threatened and wish to take legal action, you are the complainant. Here is the course of action:

• 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 of 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.
• File a Police Complaint: Your lawyer will help you draft a comprehensive complaint detailing the entire sequence of events, from the initial introduction to the specific threats made. This complaint should be submitted to the local police station having jurisdiction over the area where the threats were made.
• Request for an FIR: Insist that the police register a First Information Report (FIR) under the relevant sections of the BNS, particularly for criminal intimidation and extortion.
• Legal Notice: Your lawyer may advise sending a formal legal notice to the person making threats, demanding they cease all illegal activities immediately. This creates a formal record of your attempt to resolve the matter lawfully.

If you are the victim

As the victim of threats and potential extortion, your priority is your safety and legal protection.

• Prioritize Safety: Inform your family about the situation. If you feel the threat is imminent, ensure your home is secure and avoid being alone.
• Lodge a Complaint Immediately: Do not delay in approaching the police. The sooner you report the crime, the more seriously it will be taken, and evidence can be collected promptly.
• 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 of 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.
• Follow Legal Procedure: Cooperate fully with the police investigation but always have your lawyer guide you through the process, including giving statements and submitting evidence.

How the police behave in such cases

Police response can vary depending on the clarity of the complaint and the evidence provided.

• Focus on Criminal Element: Police are trained to identify the criminal elements in a complaint. While they may initially perceive the matter as a financial dispute (a civil case), the mention of direct threats of physical harm (sending men to your house) makes it a clear criminal matter they are obligated to investigate.
• Crypto Complexity: Some officers may not be well-versed in the technicalities of cryptocurrency. It is important to explain the situation in simple terms, focusing on the threat and extortion aspect, which is a conventional crime.
• Initial Reluctance: In some cases, the police might be hesitant to file an FIR immediately. In such a scenario, your lawyer can approach senior police officials or the Magistrate’s court under Section 175(3) of the Bharatiya Nagarik Suraksha Sanhita (BNSS) to get a direction for the police to register the FIR.

FAQs people normally have

• Am I liable for a financial loss just because I made an introduction?
  Generally, no. Merely introducing two parties does not make you a guarantor for their transaction unless you made specific representations or promises to that effect. However, this is a point of fact that needs to be clearly established.
• What if the other party files a false complaint against me?
  This is a possibility. This is why it is crucial to file your complaint first, detailing the threats you have received. This establishes you as the victim and puts your version of events on record first. Your lawyer can guide you on how to defend against a potential counter-complaint.
• Can I get anticipatory bail if I fear being arrested in a false case?
  Yes, if you have a reasonable apprehension of being arrested in a false or frivolous case, your lawyer can file for anticipatory bail on your behalf in the appropriate court.

What evidence is required?

Strong evidence is the backbone of any criminal case. For a situation like this, you should gather:

• Digital Communications: Screenshots of WhatsApp chats, text messages, or emails where the transaction was discussed or threats were made.
• Call Recordings: If legally permissible in your context and if you have them, recordings of threatening phone calls are powerful evidence.
• Witnesses: If anyone else witnessed the threats (like your family members), their statements are crucial.
• Transaction Details: Any proof you have of the original transaction, even if you were not a direct party, can help establish the context. This includes wallet addresses, transaction IDs, or any related communication.

How long will the investigation take?

The duration of a police investigation is not fixed. It can range from a few weeks to several months, or even longer, depending on various factors:

• Complexity of the Case: The crypto element can add complexity, requiring cyber cell involvement.
• Evidence Availability: The speed of the investigation often depends on how quickly the police can gather and analyze evidence.
• Cooperation of Parties: If the accused is evasive or non-cooperative, it can cause delays.
• Police Workload: The workload at the particular police station also plays a role.

Your lawyer will continuously follow up with the investigating authorities to ensure the case progresses without undue delay.

Advocate Sudhir Rao, Supreme Court of India