Indian accountant loses $2.2 million in fake cryptocurrency scam, police track nationwide fraud

A 70-year-old chartered accountant from Gwalior, India, is at the heart of what police say is one of the largest online investment scams in Madhya Pradesh. Ashok Vijaivargia, who currently serves as chief electoral officer at Madhya Pradesh Chamber of Commerce, reportedly transferred Rs 2106 million (about $2.2 million) to scammers. These scammers befriended him via social media and persuaded him to invest in a fake cryptocurrency trading platform.

Gwalior accountant becomes major scam target

Initial contact came from a message sent by someone calling himself "Divia," which started an elaborate trust scam. Over time, Vijaivargia saw false profits on his so-called investment accounts, which prompted him to deposit more money in the hope of more gains. The returns shown on these accounts turned out to be fabricated, and his multiple attempts to withdraw funds were met with excuses and delays.

After realizing that he had been deceived, Vijaivarghia contacted the authorities. The Madhya Pradesh Cybercrime Team is currently investigating the case. Deputy Superintendent Sanjiv Nayan Sharma, who heads the cybercrime unit, said the investigation involved tracking 20 bank accounts, three WhatsApp numbers and domain names associated with the fraudulent trading platform. The investigation team is working to identify suspects, freeze relevant accounts, and track digital and financial leads.

Investigators are actively tracking 20 bank accounts, multiple communication numbers and technical traces of a fake platform. Their goal is to freeze those accounts before scammers can withdraw or transfer more funds.

New fraud patterns emerge in many states

Similar scams have emerged in other parts of India. In Surat, Gujarat, police arrested 29-year-old software engineer Diviesh Patel after a complaint alleging a loss of 7.273 million rupees (approximately US$76,000) in online cryptocurrency investments through Telegram. Similar to the Gwalior case, the victim was lured to a fraudulent transaction website, promised high returns, and ultimately lost the funds deposited.

Authorities reported that 170,000 rupees (approximately US$17,700) from the scam was traced to Patel's account at IDBI Bank. Investigators claimed Patel rented his account to an associate in exchange for a 2 percent commission. The same account has been flagged in eight online fraud cases in various Indian states, with suspicious transactions totaling 24.72 million rupees, or approximately US$2.5 million.

Overview of the case

Location: Gwalore, Madhya Pradesh
Suspect: Unknown
Victim losses: 21.06 million rupees (approximately US$2.2 million)
Bank accounts involved: 20 (under investigation)
Legal charges: Under the Cybercrime Act

Location: Surat, Gujarat
Suspect: Diviesh Patel
Victim losses: 7.273 million rupees (approximately US$76,000)
Bank account involved: IDBI Bank (related to 8 cases)
Legal charges: Section 66(D) of the Information Technology (Amendment) Act 2008; Certain Articles of the Indian Penal Code 2023

Patel faces charges under Section 66(D) of the Information Technology (Amendment) Act 2008 and certain Articles of the Indian Penal Code 2023 for his alleged involvement in the fraud.

Overview of domestic and international cryptocurrency fraud

Indian authorities also recently detained Bangalore hacker Sri Krishna (also known as Sri Kiki) in connection with a bitcoin theft worth approximately 11.5 million rupees (approximately US$1.3 million). Internationally, the FBI records show that cryptocurrency-related losses in the United States reached US$11.4 billion in 2025, an increase of 22% from the previous year.

The Surat Cybercrime Team issued a public reminder urging individuals to strictly verify any unsolicited investment proposals related to the cryptocurrency, stock or foreign exchange markets. Police are advising to exit and block unknown Telegram or WhatsApp groups and to be wary of early but small returns on investment, which are often used as bait by scammers.

Authorities also encourage the public to report suspicious scams through a dedicated cybercrime hotline and strongly advise against sending money to people they meet through social media or dating platforms.