Case Study · Cybercrime Advisory
Cryptocurrency Fraud Recovery, Cybercrime Cell FIR, and Civil Asset Tracing — ₹6.8Cr Investment Scam
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Engagement Background
The Situation When We Were Engaged
A Hyderabad-based real estate developer was defrauded of ₹6.8 crore through a sophisticated “pig butchering” cryptocurrency investment scheme over an 8-month period. The scheme began with a contact on LinkedIn — an individual presenting as a Hong Kong-based fund manager — who developed an extensive online relationship before introducing a fraudulent cryptocurrency trading platform.
The fraudulent platform displayed fabricated profits over several months, encouraging progressive investment. Withdrawal requests were met with fabricated tax and compliance fee demands — classic indicators of the pig butchering pattern. The victim transferred funds via Indian bank accounts to a UAE-based intermediary, which converted funds to USDT and routed through a chain of wallets before distribution to the fraud operators.
SIRI Law LLP was engaged within 24 hours of the victim realising the fraud. Speed was critical — cryptocurrency fraud recovery depends on freezing assets before they are moved through additional mixing or converted to cash. Our team simultaneously initiated FIR proceedings, applied for exchange freeze orders, and began on-chain transaction tracing.
Client Profile
Assessment Scope
FIR, Asset Tracing, Exchange Freeze, and Civil Recovery
FIR & Cybercrime Cell
FIR filed with cybercrime cell within 72 hours under IT Act and IPC. NCRP (National Cybercrime Reporting Portal) complaint filed — ticket number obtained for bank freeze requests. Cybercrime cell liaison for asset freeze letters to Indian exchanges and banks.
Blockchain Tracing
On-chain USDT and Bitcoin transaction tracing using blockchain analytics tools. Wallet cluster identification. Exchange deposit identification — which centralised exchanges received the funds. Mixer and layering pattern documented for law enforcement submission.
Civil Asset Recovery
Civil suit filed for recovery. Mareva-style injunction application (asset freezing) supported by blockchain tracing evidence. Exchange freeze applications — one Indian centralised exchange responded with a voluntary hold pending court order. Interpol notice application via CBI liaison.
Key Findings
What We Found
Each finding documented with evidence. Root cause and remediation guidance provided for every item.
Complete pig butchering playbook documented: LinkedIn contact → extended trust-building → introduction to ‘exclusive’ investment platform → small profitable withdrawals to build confidence → progressive investment escalation → fabricated compliance fees blocking withdrawal → complete fund loss. Platform was a clone of a legitimate exchange with fabricated order books and P&L displays.
On-chain tracing followed the USDT through 7 intermediate wallets and a Tornado Cash-adjacent mixer. Despite the obfuscation, probabilistic tracing identified deposits at two centralised exchanges — one Indian, one UAE-based. The Indian exchange confirmed the wallet address was associated with a KYC-verified account, providing an actionable target for freeze orders.
The victim’s initial INR transfers went to four Indian bank accounts before conversion to crypto. All four accounts were identified as money mule accounts — registered to individuals in Rajasthan and Bihar with no business connection to the transaction volumes. Three of the four accounts had prior cybercrime complaints flagged on NCRP. Bank freeze letters issued via cybercrime cell.
The LinkedIn persona used the name and professional photograph of a real Hong Kong-based fund manager who had no connection to the fraud. The genuine individual — identified via reverse image search and LinkedIn verification — was himself a victim of identity theft. This evidence supported the charge of impersonation under IT Act Section 66C and IPC Section 468 (forgery).
Engagement Timeline
Phase-by-Phase Execution
Hours 0–72: FIR, NCRP, and Emergency Freeze Applications
NCRP complaint filed within 6 hours of engagement — reference number obtained. FIR filed at cybercrime cell with supporting blockchain trace evidence. Emergency letters to victim’s bank to freeze outgoing transactions. Cybercrime cell liaison for bank account freeze letters issued to the four identified mule accounts.
Days 3–14: Blockchain Tracing and Exchange Identification
Full on-chain trace completed — 7-wallet chain documented with probabilistic clustering. Indian exchange identified as receiving destination. Exchange approached with voluntary freeze request supported by NCRP reference — exchange placed voluntary hold on identified wallet’s balance (₹2.1Cr equivalent USDT) pending court order.
Days 15–30: Civil Suit and Injunction Application
Civil suit filed in High Court for recovery of fraud proceeds. Mareva-style asset freezing injunction application supported by blockchain evidence and exchange confirmation. Court granted interim order — exchange directed to maintain hold. Interpol Purple Notice application submitted via CBI liaison for the international fraud network.
Ongoing: Criminal Investigation and Exchange Cooperation
Cybercrime cell investigation ongoing — CBI requested to assist on international dimensions. Exchange KYC records subpoenaed — account holder identified (a nominee). Further tracing of nominee’s beneficial ownership underway. Civil proceedings continuing — ₹2.1Cr frozen asset position maintained.
Legal & Regulatory Risk Analysis
Why This Mattered Legally
Speed of Action — Cryptocurrency Recovery Window
Cryptocurrency fraud recovery has a narrow window before funds are further layered, converted to cash, or moved beyond any legal reach. Every hour of delay reduces recovery probability. SIRI Law LLP’s 24-hour engagement and 72-hour FIR filing preserved the recovery opportunity — a ₹2.1Cr freeze position that would not have existed with delayed action.
FEMA — Outward Remittance for Crypto
The victim’s transfers to UAE intermediaries for crypto purchase raise FEMA compliance questions — whether the transfers were authorised under the Liberalised Remittance Scheme and whether the crypto purchase was a permissible capital account transaction. FEMA analysis was required to ensure the victim’s own position was protected in the recovery proceedings.
PMLA — Recovery and Attachment of Proceeds
Proceeds of the fraud — the frozen USDT — constitute proceeds of crime under the Prevention of Money Laundering Act. ED attachment of the frozen assets is a possible parallel action that would strengthen the recovery position. Coordination with ED attachment proceedings can support civil recovery by preventing the opposing party from contesting the freeze.
IT Act Section 66D — Cheating by Impersonation via Computer
The fraudulent platform — designed to deceive the victim into believing they were investing on a legitimate exchange — constitutes cheating by impersonation using a computer resource under Section 66D, in addition to Section 66C (identity theft for the LinkedIn persona). Both charges were included in the FIR to ensure maximum criminal exposure for the perpetrators.
Outcomes & Remediation
What Changed After Our Assessment
₹2.1Cr Frozen at Indian Exchange — Court Order Maintained
Indian centralised exchange placed voluntary hold on ₹2.1Cr (USDT equivalent) associated with the traced wallet. High Court interim order confirmed the freeze. Recovery proceedings ongoing.
FIR Registered — Cybercrime Cell Investigation Active
FIR registered within 72 hours. Cybercrime cell has issued bank freeze letters for all four mule accounts. Investigation active — two mule account holders identified and summoned.
Interpol Purple Notice — International Network Flagged
CBI liaison application submitted for Interpol Purple Notice on the fraud network methodology. Cross-border cooperation with Hong Kong police initiated for the identity theft victim identification.
Four Money Mule Bank Accounts Frozen
All four Indian bank accounts used as INR conversion points frozen by bank pursuant to cybercrime cell freeze letters. Remaining balances — approximately ₹14 lakh in aggregate — preserved for recovery.
Compliance Frameworks
Standards Applied in This Engagement
Why Choose SIRI Law LLP
Unique Advantage
Qualified advocates + blockchain analysts — legal + technical in one team
Speed: FIR in 72 hours, exchange freeze in 14 days
FEMA and PMLA analysis — we protect the victim’s own compliance position
Cybercrime cell relationships — Hyderabad, Bengaluru, Mumbai
Director GRC & Legal — Adv. Chetan Seripally
Victim of Cryptocurrency Fraud or Cybercrime?
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