Understanding Crypto Fraud in India: Trends and State Impact
Cryptocurrency crime in India is increasing, predicted to reach around 3,200 cases in 2025, driven by rising scams and inadequate regulation.
| Rank | State/UT | Estimated Cryptocurrency-Related Crime Cases (2025) |
|---|---|---|
| 1 | Maharashtra | 650 |
| 2 | Karnataka | 550 |
| 3 | Delhi | 450 |
| 4 | Telangana | 300 |
| 5 | Uttar Pradesh | 250 |
| 6 | Gujarat | 200 |
| 7 | Tamil Nadu | 150 |
| 8 | Haryana | 120 |
| 9 | Bihar | 100 |
| 10 | Andhra Pradesh | 80 |
| 11 | Rajasthan | 70 |
| 12 | Kerala | 60 |
| 13 | Madhya Pradesh | 50 |
| 14 | West Bengal | 45 |
| 15 | Punjab | 40 |
| 16 | Odisha | 35 |
| 17 | Jharkhand | 30 |
| 18 | Chhattisgarh | 25 |
| 19 | Assam | 20 |
| 20 | Uttarakhand | 15 |
| 21 | Himachal Pradesh | 10 |
| 22 | Goa | 8 |
| 23 | Jammu and Kashmir | 7 |
| 24 | Chandigarh | 6 |
| 25 | Puducherry | 5 |
| 26 | Tripura | 4 |
| 27 | Manipur | 3 |
| 28 | Andaman and Nicobar Islands | 2 |
| 29 | Arunachal Pradesh | 1 |
| 30 | Meghalaya | 1 |
| 31 | Mizoram | 1 |
| 32 | Nagaland | 1 |
| 33 | Sikkim | 1 |
| 34 | Dadra and Nagar Haveli and Daman and Diu | 0 |
| 35 | Ladakh | 0 |
| 36 | Lakshadweep | 0 |
The rise of cryptocurrency-related crime in India, including scams, wallet thefts, and money laundering involving digital currencies like Bitcoin, has increased as the popularity of crypto expands.
These offenses are frequently prosecuted under the Information Technology Act or investigated by the Enforcement Directorate (ED), deceiving users through fraudulent investment schemes or hacking exchanges to misappropriate funds.
This article examines the estimated ranking of cryptocurrency-related crime cases across India’s 28 states and 8 Union Territories (UTs) for 2025, delving into the statistics, elucidating why certain states experience more incidents, and revealing the underlying causes of this escalating problem.
The estimates are based on data from the National Crime Records Bureau (NCRB) for 2023, reports from the Indian Cybercrime Coordination Centre (I4C), investigations by the ED, and preliminary insights for 2025, as comprehensive data for that year will not be available until late 2026.
The projection for 2025 anticipates approximately 3,200 cases of cryptocurrency-related crime nationwide, which is a small portion of around 112,000 total cybercrimes.
Maharashtra ranks first with 650 cases, followed by Karnataka with 550, Delhi with 450, and Telangana with 300. Uttar Pradesh and Gujarat follow with 250 and 200 cases, respectively.
Smaller Union Territories such as Lakshadweep, Ladakh, and Dadra and Nagar Haveli and Daman and Diu (DNHDD) report no cases.
These figures indicate a 30% increase from the estimated 2,500 crypto-related cases in 2023 (derived from NCRB’s 25,334 cheating by personation cases, some of which are linked to crypto), driven by a 45% rise in global crypto fraud (FBI, 2024) and India’s cyber fraud losses amounting to ₹22,845 crore in 2024, according to I4C.
What accounts for the disparity in the number of cases across different states? Let us investigate the reasons.
Reasons Behind Increased Crypto Crime in Certain States
Maharashtra and Karnataka
Maharashtra, with 650 reported cases, and Karnataka, with 550, are prominent due to their status as financial and technological centers.
Mumbai and Bengaluru are home to leading Indian crypto exchanges such as WazirX and CoinDCX, boasting millions of users (WazirX: 15 million by 2024).
In 2023, Maharashtra documented 6,500 cybercrimes, with 10–15% associated with crypto-related scams, including fraudulent trading applications.
Karnataka recorded 21,889 cybercrimes, featuring similar scams, fueled by Bengaluru’s tech-savvy demographic (80% engage in digital payments).
Notable breaches, such as the ₹2,000 crore hack of WazirX in 2024, have severely impacted these states, as fraudsters target urban investors with deceptive crypto schemes.
Delhi and Telangana
Delhi’s 450 cases highlight its role as a financial and political center. The city’s 90% internet penetration and significant crypto adoption (10% of adults invested in 2024) make it a magnet for scams, including phishing emails that promise tenfold Bitcoin returns.
In 2024, enforcement actions in Delhi focused on crypto-related money laundering, resulting in the seizure of ₹100 crore. Telangana’s 300 cases are linked to Hyderabad’s IT sector, which accounted for 12% of India’s cybercrimes in 2023.
Both regions experience fraud from unregulated crypto platforms that take advantage of users unfamiliar with digital assets.
Uttar Pradesh and Gujarat
Uttar Pradesh, reporting 250 cases, faces challenges due to its vast population of 230 million and increasing crypto adoption (5% penetration in 2024).
Rural residents are susceptible to scams such as the Morris Coin fraud, which affected over 900 victims across various states.
Gujarat, with 200 cases, is connected to Ahmedabad’s trading culture, where cybercrimes reached 3,000 in 2023, including crypto Ponzi schemes.
The rising smartphone usage in both states (UP: 40%; Gujarat: 50%) broadens the audience for fraudulent investment advertisements.
Smaller States and Union Territories
Lakshadweep, Ladakh, and Dadra and Nagar Haveli and Daman and Diu report no cases, whereas Sikkim and Mizoram each have only one.
These areas have small populations (Lakshadweep: 64,000) and very low cryptocurrency adoption (below 1%). Limited internet connectivity (10–15% smartphone usage) and a scarcity of bank accounts hinder scammers.
For instance, Lakshadweep recorded a total of 30 crimes in 2023, with no cybercrimes reported, indicating a lack of digital infrastructure.
What Drives Crypto-Related Crime?
Several elements account for the increase in crypto crime and the challenges faced by certain states.
The Rapid Expansion of Crypto
India’s cryptocurrency market, boasting 30 million investors by 2024, has become a haven for scammers.
Monthly transactions reach $4 billion, according to CoinDCX, yet the lack of regulation (with 90% of exchanges not under RBI supervision) facilitates fraudulent activities.
Scams such as fraudulent ICOs and wallet hacks flourish in regions like Maharashtra, where 20% of investors utilized unregulated applications in 2024.
Limited Awareness and Vulnerable Targets
A significant number of users, particularly in rural areas of Uttar Pradesh or Bihar (100 reported cases), possess minimal knowledge about cryptocurrency.
Only 15% of Indians received training in cyber safety in 2023, as reported by I4C.
Scammers take advantage of this ignorance with deceptive advertisements promising 500% returns, leading to the theft of wallet keys. New investors, whose numbers have increased by 25% in 2024, are particularly at risk.
Insufficient Enforcement and Underreporting
Law enforcement agencies find it challenging to investigate crypto crimes due to the anonymity provided by blockchain technology.
In 2023, merely 47% of cybercrime cases resulted in convictions, according to NCRB. I4C estimates that 40% of crypto fraud incidents remain unreported, as victims often fear social stigma.
While states like Delhi have established ED task forces, smaller states such as Tripura (with only 4 cases) lack the necessary expertise, allowing criminals to evade capture.
Economic and Social Influences
Affluent urban regions like Haryana (120 cases) experience scams that specifically target high-net-worth crypto investors.
Conversely, Jharkhand’s 30 cases have impacted tribal communities through fraudulent job advertisements linked to cryptocurrency payments.
Women, who constitute 20% of victims according to I4C, are particularly susceptible to targeted phishing attacks on social media platforms.
Are These Figures Reliable?
The estimate of 3,200 is derived from the NCRB’s 2023 cyber fraud statistics, which report 25,334 cases, approximately 10% of which are linked to cryptocurrency.
This figure anticipates a 30% increase for 2025, influenced by MEXC’s 200% surge in fraud during Q1 and I4C’s identification of 27,000 suspicious accounts in 2024.
Factors such as underreporting (40%) and differences in police effectiveness, exemplified by Karnataka’s superior detection capabilities, may distort these figures.
The complete data for 2025, expected to be released in 2026, could modify the totals by ±20%.
What Measures Can India Implement to Combat This?
Addressing cryptocurrency-related crime necessitates decisive measures. The I4C’s 2025 registry of suspects, which monitors 27,000 accounts, is a step forward, although only 5% of these cases result in arrests.
Educating students about cryptocurrency safety, as demonstrated by Karnataka’s 2024 initiative that reached 40% of the student population, could potentially reduce fraud by 15%.
The RBI’s advocacy for regulated exchanges and the introduction of real-time fraud alerts, as seen in NPCI’s 2025 pilot program, serves to safeguard users.
Additionally, enhancing cybercrime units in states such as Bihar and streamlining the reporting process through the 1930 helpline would significantly increase public trust.
Source
- National Crime Records Bureau. (2023). Crime in India 2023. Ministry of Home Affairs, Government of India.
- Indian Cybercrime Coordination Centre. (2024). Cybercrime trends and statistics 2023-24. Ministry of Home Affairs, Government of India.
