Crypto fraud: how to complain and chances of recovery

If you have been cheated in a crypto scam in India, stop paying, call the national cyber crime helpline 1930 and file a report on cybercrime.gov.in at once, then register an FIR and write to your bank and every Indian exchange involved. Speed decides recovery: money still sitting in an Indian bank account or exchange can often be frozen, while coins that have moved offshore are usually hard to get back, and recovery is often only partial.

Common crypto scams to recognise

• Ponzi tokens and “fixed return” plans: promises such as 2 percent a day or doubling in a year, with referral income for recruiting others.
• Pig-butchering: a stranger on a dating app or a “wrong number” chat builds trust for weeks, shows profits on a fake trading site, then demands “tax” or “unlock fees” when you try to withdraw.
• Fake exchanges and apps: clone sites that take deposits and block withdrawals, or fake wallets that steal your recovery phrase.
• Pump-and-dump and rug pulls: a hyped token or NFT project whose organisers sell into the rush or withdraw the liquidity.
• Recovery scams: someone contacts you after your loss, posing as a forensic expert, lawyer or official, and asks a fee to “trace” your coins.
• Impersonation and phishing: fake customer care, “move your coins to a safe wallet” calls, and SIM swap to take over your exchange account.

The clearest red flags are guaranteed returns, referral income, a friendly stranger turned “mentor”, profits visible only on the platform, and any demand for a fee before withdrawal. Genuine platforms deduct fees from your balance; they do not ask for fresh deposits.

What to do in the first hours, in order

1. Stop paying. Do not send any fee, tax or “unlock deposit”, and do not pay a recovery agent.
2. Call 1930 and report. Note the acknowledgment number. Reporting early helps freeze money in transit.
3. File on cybercrime.gov.in under financial fraud and upload evidence.
4. Inform your bank if you paid by UPI, card or bank transfer, and ask them to flag the transactions. Our guide on what to do in the first hour of cyber fraud covers this step in detail.
5. Write to the Indian exchange you used, and any Indian exchange the money went to, with your account details, transaction hashes and destination wallet addresses. Ask them to preserve records and to flag or freeze receiving accounts on their platform. Quote your complaint number.
6. Preserve evidence (list below) and do not delete chats or apps.
7. Register an FIR. Under section 173 of the Bharatiya Nagarik Suraksha Sanhita, 2023, information can be given at any police station irrespective of where the offence happened, and you get a free copy. If the officer refuses, send the substance in writing to the Superintendent of Police, and then approach the Magistrate.

Evidence checklist

• Screenshots of chats, profiles, phone numbers, emails and group names
• Website and app names, with screenshots of your “balance” and the withdrawal demand
• Exchange statements showing purchases and outgoing transfers
• Transaction hashes and wallet addresses for every crypto transfer
• Bank and UPI statements for every rupee payment
• A written timeline: dates, amounts and what you were told

Blockchain transactions are public, so a transaction hash lets investigators follow the coins. Many large exchanges respond to law enforcement requests to freeze identified wallets.

Freezing, release and the limits of recovery

Several legal tools exist, each with a different user.

• Section 106 BNSS (old CrPC section 102): police can seize property, including bank balances and exchange holdings, suspected to be connected with an offence.
• Section 107 BNSS: on the police’s application, a Magistrate can attach proceeds of crime and, after due process, order their distribution to those entitled.
• Interim release: the Magistrate can release seized property to the rightful claimant during the case. A victim whose money is frozen usually has to apply to the Magistrate with the police report.
• PMLA, 2002: the Enforcement Directorate can attach proceeds of crime in money laundering cases, and the law provides for restoration to people with a legitimate interest.
• BUDS Act, 2019: for unregulated deposit schemes, a state Competent Authority can attach assets and a Designated Court can order repayment of depositors.

Be realistic. Funds still in an Indian bank or exchange can often be frozen. Coins moved to a private wallet or an uncooperative foreign platform are far harder to reach. Mixers, swaps and cross-chain bridges blur the trail. Offshore fraudsters are hard to prosecute and cases can take years. Partial recovery shared among victims in proportion is common. Also note that a loss from fraud is not a deductible VDA loss for tax, but keep your complaint papers because they help if the department later questions transactions on your PAN.

Who can be held responsible

Behind every scheme are founders, recruiters, mule account holders and sometimes paid promoters. The usual charges combine several laws.

• Cheating under section 318 of the Bharatiya Nyaya Sanhita, 2023, and criminal breach of trust under section 316.
• Criminal conspiracy under section 61, and organised crime under section 111 where a syndicate is involved.
• Information Technology Act, 2000: section 66C (identity theft) and section 66D (cheating by personation using a computer resource).
• The Banning of Unregulated Deposit Schemes Act, 2019: it bans unregulated deposit schemes, punishes soliciting and accepting deposits and wrongful inducement, and lets the state attach assets. It fits best where investors paid rupees into a plan promising fixed returns. Where the investment was in crypto itself, police usually combine it with BNS charges, and ask the police to inform the Competent Authority.
• Consumer Protection Act, 2019: the Central Consumer Protection Authority can act against misleading advertisements and penalise endorsers, subject to a due diligence defence. ASCI guidelines of 2022 require a risk disclaimer in crypto ads and bar profit promises.

People who lend or sell their bank or exchange accounts to fraudsters can be prosecuted as accused. Small payments for “account rental” are a trap. For how exchanges verify users, see our guide on KYC and FIU registration.

If the exchange itself failed or cheated you

A platform that collapses or freezes withdrawals is not the same as a scam by a stranger, but the remedies overlap. Email the grievance officer with transaction IDs, send a legal notice setting out your holdings and demand (see how to send a legal notice), consider a consumer complaint on e-Jagriti for claims within the District Commission’s limit, and file a police complaint if funds appear misappropriated. The Madras High Court in October 2025 treated exchange-held crypto as property held in trust and granted interim protection, which supports such claims, though litigation is slow and costly. If you cannot afford a lawyer, the District Legal Services Authority and the NALSA helpline 15100 can help.

For the model letters and a step-by-step plan, see the Crypto and VDA Law and Tax course.

Frequently asked questions

Can I get my money back after a crypto scam?

Sometimes, in part. If funds are traced to an Indian account or exchange quickly, they can be frozen and later released by the Magistrate. Money that has gone offshore is rarely recovered.

Should I hire a crypto recovery expert?

No one who demands an upfront fee should be trusted. Genuine police and legal processes do not charge for freezing, and no private agency can reverse a blockchain transaction.

Which complaint should I file first, 1930 or an FIR?

Call 1930 and file on cybercrime.gov.in immediately, because speed helps freezing, and then register the FIR. Do both the same day if possible.

Can I complain to FIU-IND or RBI?

FIU-IND is not a forum for individual victims, and RBI does not regulate crypto products. Use the police, 1930 and the cyber portal.

Is my FIR valid if the scammer is in another state or country?

Yes. Information can be given at any police station irrespective of where the offence occurred, and the police transfer it to the right jurisdiction.

Can influencers who promoted the scheme be punished?

They can face action for misleading endorsement, and criminal liability if they knew the claims were false. Whether a particular promoter is liable depends on facts.

Quick quiz

Sources

• Bharatiya Nagarik Suraksha Sanhita, 2023: sections 106, 107, 173 and 175(3)
• Bharatiya Nyaya Sanhita, 2023: sections 61, 111, 316 and 318
• Information Technology Act, 2000: sections 66C and 66D
• Banning of Unregulated Deposit Schemes Act, 2019
• Prevention of Money-laundering Act, 2002
• Consumer Protection Act, 2019 and ASCI guidelines for advertising of virtual digital assets (2022)
• Lalita Kumari v. Government of Uttar Pradesh (Supreme Court, 2013) on mandatory registration of FIR

This page is for education and general information, not legal advice for a specific case. Law as on 7 November 2026.