India Develops Tool to Fight Cryptocurrency Fraud

India’s Ministry of Home Affairs has unveiled a Cryptocurrency Intelligence and Analysis Tool (CIAT) to counteract escalating crypto frauds.

As India deals with a series of high-profile instances of Cryptocurrency Fraud and theft, including one in which a Bollywood star acted as an influencer, the government is developing a specific digital tool to detect and prevent crypto crime.

To that end, the Ministry of Home Affairs (MHA) recently unveiled a cutting-edge Cryptocurrency Intelligence and Analysis Tool (CIAT). The tool, which was thoroughly developed by the renowned Indian Cyber Crime Coordination Centre, aspires to be the pivotal point in India’s fight against cyber criminals.

India Battles Cybercrime Threats or Cryptocurrency Fraud

According to an article published on CNBC, the CIAT will monitor the dark net, a part of the internet that criminals seeking anonymity use on a daily basis. It will also recognize crypto wallet addresses used in dark net transactions. It will send out alerts if it detects questionable practices.

Cryptocurrency Intelligence and Analysis Tool

Furthermore, the CIAT will compile records of the transactions it monitors. The report stated that dates, timestamps, addresses, and the nature of the transactions were all recorded. Unusually high transaction volumes will raise a red flag and prompt an alert.

Apart from this diligent surveillance, the CIAT’s vast database is a differentiating asset. The database contains thorough information about all known Crypto exchanges throughout the world, complete with contact information. This database becomes invaluable for law enforcement organizations since it enables seamless communication with exchanges, which is critical during in-depth investigations.

India’s War on Cryptocurrency Fraud

CNBC report noted that the CIAT was created in response to India’s abysmal statistics on crypto crime. As per reports, Indian citizens have lost over 953 crore, or approximately $10.2 billion, to crypto frauds. 

Cryptocurrency Scams in India

What the study fails to mention is that many Indians must have been outraged by high-profile scams. These frequently involve influencers and other celebrities who mislead them into believing they are making secure investments.

On Monday, the Times of India reported that police were on their way to investigate Bollywood star Govinda about his involvement in a cryptocurrency scam. Govinda had volunteered as an influencer for Solar Techno Alliance’s marketing campaign. In July, he was featured in advertisements and at an event in Goa. 

The arrests of Solar Techno Alliance executives began in August. Without a doubt, the firm’s extravagant promotions were a huge success. They received over 30 crores, or more than $320 million, from all throughout India. 

The only issue is that Solar Techno Alliance, according to Indian authorities, was a Ponzi scheme. Instead of making real investments, its executives spent the money wherever they wished.

Unmasking the Persistent Threat of Romance Scams

Another high-profile scam earlier this month may have fueled broad dissatisfaction with the crypto space’s excesses. According to reports, an Indian software engineer lost more than $120,500. He was convinced to invest in Banocoin by a woman he met online. 

According to the Times of India, the engineer invested funds in 18 distinct transactions from July 20 to August 31, believing that his new romantic interest had turned him on to a lucrative prospect. He even made a small profit, which reinforced his confidence. However, as so often happens in crypto investment frauds, the victim was unable to withdraw the funds.

With such scams being so common in India, the Ministry of Home Affairs is not wasting time in implementing CIAT. Many people believe that, at long last, there is a resource that may block fraudulent actors and save ordinary traders and investors from the anguish and misery that crypto scams cause.


India’s unveiling of the Cryptocurrency Intelligence and Analysis Tool (CIAT) marks a defining moment in its fight against crypto crimes. With a surge in scams costing citizens dearly, the CIAT’s vigilant dark net monitoring and proactive alert system are critical tools for timely intervention. 

The extensive database linking global exchanges enhances investigative capabilities. As crypto-related crimes cast shadows over the digital landscape, India’s efforts offer a beacon of hope. CIAT not only aims to combat but also preempt crypto malfeasance, safeguarding citizens in the evolving digital age.

To learn more about how the Indian government is countering this kind of Cryptocurrency Fraud, go check out SunCrypto Academy.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. All content provided is for informational purposes only, and shall not be relied upon as financial/investment advice. Opinions shared, if any, are only shared for information and education purposes. Although the best efforts have been made to ensure all information is accurate and up to date, occasionally unintended errors or misprints may occur. We recommend you do your own research or consult an expert before making any investment decision. You may write to us at [email protected].

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