A 24-year-old cryptocurrency trader from Bengaluru has reportedly been defrauded of tether coins worth ₹46.84 lakh by three individuals posing as buyers. The incident highlights the risks involved in digital currency transactions and the trust traders place in seemingly legitimate deals.
The victim, identified as Manu Rashid, operates Shri Ram Digital Assets and Services alongside his brother, Mohammad Shanu. According to the First Information Report (FIR) filed at the CEN police station, the accused — Shafi China, Shahabaz M.P.C., and Fazil — contacted Manu via Binance, one of the largest cryptocurrency exchanges.
Building Trust Before the Fraud
The accused initially gained the brothers’ trust by offering to buy 6,000 tether coins, paying over ₹5 lakh in cash upfront. At the time, the market value of a single tether coin was ₹84.35. The prompt payment instilled confidence in the brothers, leading them to proceed with a larger transaction.
The fraud unfolded between July 4 and July 15, when the accused requested a transfer of 49,830 tether coins. Trusting the buyers due to their initial reliability and the referral by a known person through Binance, Manu completed the transfer in multiple transactions to the accused’s Binance account.
Discovery of the Scam
After the large transfer was completed, the accused stopped responding to calls and became unreachable. Mohammad explained, “In the beginning, we did not approach the police as we wanted to settle the matter through compromise. The FIR was registered only in November. In July, the total value of the coins was ₹46,84,088.”
A History in Cryptocurrency
Both Manu and Mohammad have been involved in cryptocurrency trading for several years and even operate a company in Dubai. However, this incident underscores how even experienced traders can fall victim to fraud when trust is misplaced.
Mohammad elaborated, “As the accused were referred by a known person through Binance and because they made the initial payment promptly, we trusted them. Initially, they were available on call, but later, they went incommunicado.”
Legal Action
The brothers eventually decided to approach the police after failing to recover the stolen coins through informal negotiations. The case is now under investigation by the CEN police station.
This incident serves as a cautionary tale for cryptocurrency traders, emphasizing the importance of due diligence and the potential pitfalls of trusting buyers, even those referred through reputable platforms.
