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Jimmy Aki
Author
Jimmy Aki
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Binance and the Delhi Police announced on Tuesday that they have teamed up to dismantle a large-scale renewable energy scam in India, seizing over $100,000 in USDT from fraudsters linked to a fake solar company.
The scam, orchestrated by criminals under the guise of supporting India’s renewable energy goals, fooled many unsuspecting investors.
How the Binance Energy Scam Operated
The fraudulent operation centered around a fake company called M/s Goldcoat Solar, which falsely claimed to be authorized by India’s Ministry of Power.
Using the nation’s ambition to boost solar power capacity to 450 gigawatts by 2030 as a cover, the fraudsters built a scheme that led to multiple arrests and the seizure of substantial funds.
According to an October 15 Inc42 news report, the criminals circulated fake reports showing high returns from supposed previous investors, which helped build trust among new victims and convinced them to invest their money.
To evade detection, the fraudsters registered numerous SIM cards under the names of unsuspecting individuals.
Some of these SIM cards were even shipped overseas, adding another layer of complexity to the investigation.
The scammers further strengthened their deceit by establishing a polished digital presence.
They leveraged social media platforms to impersonate senior government officials and spread false claims, making their operation appear legitimate.
The fraudulent scheme specifically targeted individuals interested in supporting India’s renewable energy push, making it seem as though their investments were part of a larger national effort.
Once the funds were collected, the fraudsters funneled the money through various bank accounts, converting some of it into cryptocurrency.
This conversion process made it significantly harder for authorities to trace the stolen funds and uncover the full extent of the scam.
Binance’s Role and Ongoing Efforts
Binance played a critical role in assisting the Delhi Police in taking down the Binance energy scam.
The company provided advanced analytical tools that helped investigators track the complex web of financial transactions tied to the fraud.
These efforts were key in uncovering how the stolen funds moved through different accounts before being converted into cryptocurrency.
This crackdown on the Binance energy scam comes after the company’s re-entry into the Indian market as a registered entity with the Financial Intelligence Unit (FIU).
Binance’s collaboration with local authorities showcases its commitment to complying with regulations and ensuring safer transactions for users in India.
The case also sheds light on a growing trend in India—an increase in cryptocurrency-related scams.
With digital currencies gaining traction and the government pushing for renewable energy, criminals have found new ways to exploit both industries.
Thousands of individuals in India have fallen victim to scams involving fake job offers that lure them into cybercrime and cryptocurrency fraud, often targeting Southeast Asia.
India ranks fifth globally for cryptocurrency-related complaints, with over 840 cases reported and $5.6 billion lost to scams.
Financial losses in India from these frauds have totaled $44 million, placing the country among the ten hardest hit by such schemes.
