CoinDCX: Friends, these days, news of fraud through online job apps, investment apps, or fake e-commerce links has become so frequent that people’s trust is beginning to erode. Meanwhile, a major action has once again captured national attention. The Hyderabad zonal team of the Enforcement Directorate (ED) has uncovered a national-level cyber fraud racket and provisionally attached a total of ₹8.46 crore.
How did the fraud happen? ED’s investigation reveals shocking facts
The investigation revealed that criminals defrauded thousands of people under the guise of fake e-commerce sites, fake investment apps, and part-time job schemes like the NBC App, HPZ Token, RCC App, Power Bank App, etc.
People who sent money in the name of work or investment were initially transferred to a few ‘short-lived’ bank accounts that remained active for only 1 to 15 days. The funds were then transferred to over 80 other accounts to make tracing difficult, and then either transferred through hawala networks or converted into crypto, making them disappear.
USDT Tether was the main weapon of fraud
The ED’s most interesting discovery was that the fraud network purchased USDT (Tether) through third-party bank transactions and then sold it through Binance’s P2P marketplace, turning the money into “digital smoke.”
The investigation also revealed that some sellers engaged in price arbitrage by purchasing USDT at very low prices on platforms like WazirX, Buyhatke, and CoinDCX and selling it to fraudsters at a higher price.
Approximately ₹4.8 crore worth of USDT was converted on CoinDCX through accounts with incomplete KYC, meaning their true identities had not been verified. This is why the ED described this as an industry-wide misuse.
CoinDCX’s statement, ”We are not at fault; we continue to fully cooperate.”
CoinDCX responded to the ED’s statement, stating that it does not tolerate any misuse of its platform. The company clarified: The ED’s notice itself states that several platforms were misused. CoinDCX has not been accused of any wrongdoing. We are fully cooperating with the investigation.”
KYC and AML regulations in the crypto industry have become much stricter, and this incident demonstrates how quickly fraudulent networks find and exploit loopholes in the system.
| Category | Details |
|---|---|
| Agency | Enforcement Directorate (ED), Hyderabad Zone |
| Amount Attached | ₹8.46 Crore |
| Accounts Involved | 92 bank accounts + multiple crypto wallets |
| Crime Type | Nationwide cyber fraud via fake e-commerce & investment apps |
| Key Platforms Misused | CoinDCX, Binance P2P, WazirX, Buyhatke |
| Main Crypto Used | USDT (Tether) |
| Misuse Type | Non-KYC accounts, third-party payments, P2P arbitrage |
| ED’s Stand on CoinDCX | No wrongdoing alleged; only misuse by unverified users |
| Apps Linked to Fraud | NBC App, HPZ Token, RCC App, Power Bank App, Making App |
| Proceeds of Crime | ~₹285 Crore routed across 30+ short-lived accounts |
Frequently Asked Questions
Q1. Has the ED made any allegations against CoinDCX?
No. The ED has only mentioned misuse of the platform, not any wrongdoing.
Q2. Was this money obtained by defrauding users?
Yes, most of the money was obtained through fake investment and job apps.
Q3. Can crypto platforms prevent this type of fraud?
Yes, it can be prevented by tightening KYC and transaction monitoring.
Q4. Will victims get their money back?
This will depend on the court and the further investigation process.
Q5. Is P2P crypto trading safe?
It is safe, but transactions should only be conducted with verified users.
Disclaimer: This article is for informational purposes only. Any legal or financial information contained herein is based on official documents from the relevant government agency. Before making any decisions, understand the risks associated with cryptocurrencies and digital transactions.
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