Decade-Long Cryptocurrency Scam '4th Bloc Consultants' Exposed by Indian Authorities

India's Enforcement Directorate (ED) has uncovered a decade-long cryptocurrency investment scam.

This month, the ED dismantled a large-scale cryptocurrency investment fraud orchestrated by 4th Bloc Consultants and its associates. The group allegedly defrauded local Indian investors and some foreign investors using a fake cryptocurrency platform.

Indian authorities stated that the suspects laundered illicit proceeds through shell companies, cryptocurrency wallets, foreign accounts, and "hawala routes."

The ED launched raids across 21 locations in India, including multiple residential and office premises linked to 4th Bloc Consultants.

Officials disclosed that the perpetrators mimicked legitimate cryptocurrency exchanges and created professional-looking websites featuring fake trading panels, transaction records, and account balances. These illusions led victims to believe they were genuinely participating in cryptocurrency trading, but in fact they were not.

4th Bloc Consultants allegedly began operations in 2015 and evolved over time to evade regulation. The scheme offered some returns to early investors, encouraging them to deposit more and recruit others, which consititues a structure highly similar to Ponzi scheme.

Additionally, 4th Bloc Consultants conducted promotional campaigns on social media platforms to attract more users to the fraudulent cryptocurrency platform.

During the raids, the ED also seized several servers and digital devices, which are currently undergoing analysis. Authorities stated they will thoroughly investigate this financial fraud network and conduct comprehensive inquiries into all individuals and entities involved.

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