Indian Authorities Pursue Extradition of Crypto Fraud Suspect Arrested in UAE in ₹113 Crore Money Trade Coin Scheme

Indian authorities have traced and arrested a suspect accused of defrauding investors through a cryptocurrency scheme called Money Trade Coin in the UAE. The suspect allegedly posed as a Finance Ministry official to attract investors between 2017 and 2018, causing losses exceeding ₹113 crore. Indian authorities are now preparing extradition proceedings following his arrest in Dubai, where he had been living under a false identity.

Overview of the Case

Between 2017 and 2018, a large-scale investment fraud scheme involving a cryptocurrency called Money Trade Coin (MTC) defrauded investors of more than ₹113 crore. The primary suspect, Amit Lakhanpal, was arrested in the United Arab Emirates and is currently subject to extradition proceedings to India.

How the Fraud Worked

Building False Credibility

The suspect posed as a Finance Ministry official to gain investor confidence. The scheme operated through seminars conducted at luxury hotels in major cities including Delhi, Pune, and Nashik.

Promises Made to Investors

Investors were told that:

Money Trade Coin would receive government recognition
The cryptocurrency's value would increase significantly
Their investments would generate substantial returns

Multiple Schemes Launched

After the initial MTC fraud, Lakhanpal and associates established several additional fraudulent cryptocurrency schemes:

Coin Deposit Ratio
MTC Banque
MTCX India
Cryptozaniya

These operators manipulated coin prices and eventually halted trading and withdrawal functions, causing investors to lose both their principal investments and promised returns.

Escape and Capture

Following registration of the case, Lakhanpal and associates fled India using fraudulent passports from Antigua and Barbuda. He subsequently lived in Dubai under a false identity. Information shared with UAE authorities through Interpol channels led to his arrest.

Investigators also tracked the suspect's wife, who attempted to leave India three times during 2023-24 but was stopped at the airport. She eventually departed using a fraudulent passport obtained abroad.

Asset Recovery Efforts

Seizures

Approximately ₹1 crore in cash was seized during searches in the Mumbai-Thane region

Investigation Scope

Authorities are examining:

Properties linked to the accused
Bank accounts and financial transactions
Cryptocurrency-related transactions
Flow of the ₹113 crore allegedly collected through the scheme

Warning Signs of Similar Fraud

Claims of authority (government official status) by scheme promoters
Promotion of unrecognized or unregulated cryptocurrencies
Guarantees of high returns or "assured profits"
Lack of regulatory approval or official recognition
Exclusive seminars at high-end venues
Sudden suspension of trading or withdrawal functions

Protection Measures

Verify Before Investing
- Confirm regulatory approval from official sources
- Independently verify the identity and credentials of promoters
- Check official exchange websites before investing
Be Skeptical of Unrealistic Promises
- Avoid schemes guaranteeing exceptionally high returns
- Understand that profit is never guaranteed
Use Official Channels
- Only use verified official cryptocurrency exchange platforms
- Ignore investment solicitations from unofficial sources
Seek Advice
- Consult trusted family members or financial advisors before major investments
- Research seminars thoroughly before attending

Where to Report Suspected Fraud

India's Cyber Crime Reporting Portal
Local police fraud investigation departments
Financial regulators (SEBI)
Consumer protection commissions