Crypto scams are an everyday occurrence in India, affecting both urban and rural populations. A significant increase in crypto scams during Q3 2023, per the bug bounty platform Immunefi’s report, points to an alarming trend. The Mixin hack on September 25, with attackers stealing nearly $200 million, contributed to its rise. Additionally, another report reveals that over 10 crore Indians have fallen victim to the top 15 pump-and-dump Ponzi schemes in the last three decades, resulting in an average loss of approximately 15.3 lakh per victim. Despite these risks, India stands as the second-largest crypto market globally. In light of these disconcerting statistics and contrasting trends, Dilip Chenoy, Chairman of Bharat Web3 Association, and Edul Patel, Co-founder and the CEO of Mudrex, address the vulnerability of the average Indian crypto investor, especially the 18 to 35 age group lacking knowledge and the absence of a dedicated regulator. Chenoy and Patel joined a virtual conversation moderated by Miloni Bhatt, Editor – Digital Broadcast, economictimes.com, as part of a webinar titled ‘Security Essentials for Crypto Investors’. The experts highlight the importance of awareness, responsible investment, and research to avoid scams. Chenoy observes that fraud in traditional online financial services surpasses that in the crypto space. He emphasises the need for awareness, responsible investment, and thorough research to avoid scams, addressing concerns about the perceived lack of regulation in the crypto market.In this episode of the exclusive series titled ‘ETMarkets Crypto TV’, presented by The Economic Times and powered by Mudrex, the experts delve into the nature of scams, attributing them to the classical game theory of “greed” rather than the asset class itself. Patel contends that scams are an ongoing occurrence throughout history, and regulations provide a framework that enhances credibility and investor protection, potentially reducing the probability of falling victim to fraudulent schemes. Watch the full webinar to learn about red flags in crypto investments and preventing common scams like pump-and-dump, phishing, and giveaway schemes. Whether you are a cryptocurrency enthusiast, an amateur, or a seasoned crypto investor, tune in to catch the experts discussing how to stay well-informed and safeguard your assets against the innovations of scammers.
