STF Busts Multi-Crore IPO and Crypto Scams Targeting Retail Investors
The Uttar Pradesh Special Task Force (STF) has uncovered two major investment fraud rackets that collectively duped investors of hundreds of crores through sophisticated and seemingly legitimate operations. Acting on a complaint from Securities and Exchange Board of India, the STF arrested 26-year-old Rupesh Bhardwaj from Gurugram for allegedly posing as a stock market expert and luring victims with promises of high returns in shares and IPOs. Operating under the name X Traders Enterprises, Bhardwaj reportedly used fake documents and share certificates to gain trust, while his firm remained unregistered—one of the primary red flags in the case.
In a separate but far larger operation, the STF exposed a nationwide crypto-forex scam led by Jatindra Ram, involving an estimated ₹700–800 crore. Through a company named Sea Prime Capital, the accused allegedly built a vast network of over 3,500 agents and created more than 30,000 user accounts. Investors were enticed through social media campaigns, seminars, and advertisements promising lucrative returns in cryptocurrency and USDT. Authorities revealed that a trading application, MT-5—unauthorised in India—was used to display fake profits and manipulate user confidence, with some victims even receiving initial payouts to encourage further investments.
Investigations found that the defrauded funds were converted into cryptocurrency and transferred to overseas accounts in Dubai and Mauritius, often routed through shell companies to appear legitimate. The accused have been booked under multiple laws, including the Prevention of Money Laundering Act and the Foreign Exchange Management Act. Officials warn that such scams are becoming increasingly organised and digital, urging investors to remain cautious of “guaranteed returns,” unregistered entities, and high-pressure investment tactics that often signal fraudulent schemes.
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