Bengaluru Crypto Influencers Accused of $35 Million Investment Scam

The Directorate of Enforcement (ED) in India has launched an investigation into an alleged cryptocurrency investment scam worth over $35 million. The probe centers on Bengaluru-based crypto influencers who allegedly promised discounted token allocations to overseas investors.

According to the ED, the accused promoted themselves as 'key opinion leaders' and industry insiders, using social media platforms like Telegram, WhatsApp, Instagram, websites, and in-person meetings to lure investors. They claimed access to 'guaranteed, steeply discounted direct token allocations' from major blockchain projects such as MultiverseX, Kava, BEAM, GRASS, SUI, VANA, and AGLD.

Investors were allegedly convinced by the promise of private placements before public exchange listings, which can make promised discounts attractive. The ED says the accused used false credentials to support these offers, claiming direct ties with blockchain developers. Instead of using regulated payment channels, investors transferred digital assets.

The investigation revealed that Mohammed Waseem, Saurabh Diwan, and Vaibhav Gupta handled investor contact and token promises. Funds were then routed through several wallets, with large parts traced to Ravindra K in Bengaluru. The ED believes more foreign companies and wealthy investors may have suffered similar losses.

The agency carried out searches at several Bengaluru locations on July 18 and 19, seizing digital devices, emails, wallet records, and encrypted account details. The seized material may show how funds moved between wallets and personal accounts, potentially identifying more victims. International cooperation may become necessary as the suspected transactions crossed several countries.