Cryptocurrency Scam: Mumbai Police Arrest Two in ₹30 Lakh USDT Crypt Fraud Case

Malad Police have busted a gang that allegedly cheated a businessman and his friends of nearly ₹30 lakh by luring them with false promises of converting Indian currency into USDT cryptocurrency. Two prime accused in the case have been arrested, while a search is underway for other members of the gang.

The arrested accused have been identified as Farhan Maqbool Hasan Chaudhary and Salman Ejaz Ahmed Sheikh. Police officials said the involvement of several other accomplices has come to light, and further investigation is in progress. The police are also probing whether the gang has carried out similar frauds in the past.

The complainant, Shan Mohammad Khan, a resident of Deonar in Govandi, has been running a spice trading business under the name Natural Spices for the past 28 years. His childhood friend Narayan Hari Singh, who earlier worked as a software engineer in Pune, had recently quit his job and moved to Mumbai to start his own business.

In December 2025, Narayan told Khan that converting Indian currency into USDT cryptocurrency could yield high profits and claimed to have developed an application for crypto trading. He sought financial assistance of ₹30 lakh and requested that the amount be converted into USDT.

Trusting his friend and owing him money, Khan decided to help. He arranged ₹9 lakh from his own funds and collected the remaining amount from friends, eventually handing over ₹30 lakh. As neither Khan nor his associates had prior experience in crypto transactions, they began searching for someone who could convert Indian currency into cryptocurrency.

During this period, one of their acquaintances informed them about a man named Salman in Malad who was allegedly involved in such transactions. Khan and Narayan met Salman at his office, Naresh Enterprises, located at Dhukka Chamber, Poddar Road, Magic Square, Malad. Several individuals were present at the office, including Farhan. Salman introduced Farhan as the person who would convert the Indian currency into USDT.

Later, the accused took them near the office of K Amritlal & Company at Natraj Market, where they were introduced to another individual named Karan and a few others. Karan showed them a demo of the transaction and assured them of a successful deal, thereby gaining their trust. Believing the demonstration, Khan and his associates handed over ₹30 lakh, which was passed on to another individual present there.

Shortly thereafter, Salman and another accused, Omkar, stepped out and did not return. It later emerged that they had fled the spot along with their accomplices. Subsequently, five to six women and three men arrived at the office, abused the victims, and forced them to leave. Attempts to contact Salman, Farhan, and Karan proved futile as all their phones were switched off.

Realising they had been duped, Khan approached Malad Police and lodged a complaint against the accused. After verifying the complaint, police registered a case of cheating and criminal breach of trust against Karan, Salman, Farhan, Gopal, and one unidentified person.

Following the registration of the FIR, police launched a manhunt and detained Farhan Chaudhary and Salman Sheikh for questioning. During interrogation, the duo confessed to committing the fraud with the help of their associates. They were subsequently arrested and produced before the court, which remanded them to police custody.

Further investigation is underway, and police officials have indicated that several shocking revelations may emerge during questioning. Efforts are also being made to trace other accused involved in the case and to ascertain whether the gang has committed similar offences elsewhere.