Scammed in Crypto? You’re Not Alone.
Investing in cryptocurrency is exciting, especially with many success stories on social media. But let’s face it—where there’s money, there are scammers. Every week, Indian investors fall prey to fake exchanges, Ponzi schemes, pump-and-dump groups, and phishing attacks.
If you or someone you know has been duped in a crypto scam, take a deep breath—you can fight back legally.
In this guide, I’ll walk you through exactly how to sue a cryptocurrency scammer in India—step by step. From collecting evidence to filing complaints and navigating the court, I’ll explain everything in simple language. Let’s get your money (and peace of mind) back.
What Is a Cryptocurrency Scam?
Before you act, you need to understand what kind of scam you’ve fallen for. Here are the common types of crypto fraud in India:
- Fake investment schemes (promising daily returns)
- Phishing websites pretending to be real exchanges
- Rug pulls (projects that disappear after collecting money)
- Pump and dump groups on Telegram or WhatsApp
- Impersonation frauds (scammers posing as influencers or officials)
- Wallet hacking or malware apps
Step 1: Gather Evidence of the Scam
Before taking legal action, you need solid proof of fraud. Here’s what to collect:
1. Transaction Records
- Screenshots of wallet addresses (sender & receiver)
- Blockchain transaction IDs (TxHash) from Etherscan, BSCScan, etc.
- Bank statements showing deposits to exchanges/wallets
2. Communication Proof
- Emails, WhatsApp chats, and Telegram messages with the scammer
- Call recordings (if applicable)
- Social media profiles of the scammer (if identifiable)
3. Platform Details
- Name of the fake exchange, website, or app
- Screenshots of promises/offers made by the scammer
- Domain registration details (use Whois lookup)
Pro Tip: The more evidence you have, the stronger your case will be.
Step 2: Report the Scam to Authorities
Many victims make the mistake of not reporting, thinking nothing will happen. But the truth is: reporting puts your complaint on record and often triggers action if others report the same scam.
Report to these authorities:
1. Cyber Crime Portal (Govt. of India)
- Website: https://cybercrime.gov.in
- Select “Report Other Cyber Crime” > “Financial Fraud”
- Attach your evidence and fill in the details.
2. Local Police Station or Cyber Crime Cell
- File a written complaint and get a receipt copy stamped.
- If they refuse to register an FIR, you can escalate to the Superintendent of Police under Section 154(3) CrPC.
3. RBI or SEBI (If Regulated Platform Is Involved)
- If the scam involves a regulated financial institution, file a complaint via:
- RBI: https://cms.rbi.org.in
- SEBI: https://scores.gov.in
Step 3: Hire a Lawyer Specialising in Cyber Fraud
Since crypto scams are complex, you’ll need a lawyer familiar with:
- Cybercrime laws (IT Act, IPC)
- Blockchain forensics (tracing transactions)
- Financial fraud cases
How to Find the Right Lawyer?
- Search for “crypto fraud lawyer in [your city]”
- Check credentials (past crypto scam cases)
- Consult multiple lawyers before choosing one
Note: Legal fees vary—some charge per hearing, others a flat fee.
Step 4: File a Police FIR (First Information Report)
If there’s no response to your legal notice, you need to escalate by filing an FIR.
Applicable legal sections for crypto scams:
- Section 420 IPC – Cheating and dishonestly inducing the delivery of property
- Section 66D IT Act – Impersonation using computer resources
- Section 406 IPC – Criminal breach of trust
- Section 120B IPC – Criminal conspiracy
📍 Important: Always ask for a copy of your FIR. It’s your legal weapon.
If police refuse to register your FIR, file a complaint to the SP (Superintendent of Police) or move to the Magistrate under Section 156(3) CrPC.
Step 5: File a Civil Suit for Recovery (Optional)
In parallel with criminal action, you can also file a civil case for recovery of money in a district or high court.
When is this useful?
- If you know the scammer’s identity and want to recover funds directly
- If the scammer is a company with assets
You’ll need a lawyer to file a money recovery suit under the Civil Procedure Code. Attach your FIR, legal notice, and evidence.
💡 Note: Court fees apply based on the claim amount. But in high-stakes scams, it’s worth it.
Step 6: Trace the Scammer (With Legal Help)
Crypto transactions are pseudo-anonymous, but not untraceable.
How Lawyers & Police Track Scammers:
- Blockchain Analysis – Follows money flow via tools like Chainalysis.
- Exchange Cooperation – If funds are moved to Binance/WazirX, they may freeze accounts.
- IP Tracking – If the scammer used KYC-linked accounts.
Note: Recovery isn’t guaranteed, but tracing increases chances.
Step 7: Track the Progress and Stay Proactive
Justice takes time in India, but your follow-up can make a big difference. Here’s what you can do:
- Track FIR status using the state police portal
- Follow up with the IO (Investigation Officer)
- File RTIs if the police delay action
- Update platforms or social media to create awareness
🙌 Many scams are solved because victims stayed consistent and loud.
Can You Get Your Money Back?
Honest answer: It’s difficult but not impossible.
- If the scammer is caught & assets are seized, you may recover some funds.
- Some victims get partial refunds via exchange reversals (if caught early).
Prevention Tip: Always use registered exchanges (CoinDCX, WazirX) and avoid “too good to be true” schemes.
FAQs About Suing a Crypto Scammer
Q1. Can I get my money back?
Yes, if the scammer is identified and funds are traceable. It may take legal effort, but it’s possible.
Q2. What is the punishment for crypto fraud in India?
Under the IPC and IT Act, jail terms range from 3 to 7 years plus fines.
Q3. Can I file a complaint online?
Absolutely. Use cybercrime.gov.in for fast action.
Q4. Do I need a lawyer?
Not always at first. But to sue in court, yes, a lawyer is highly recommended.
Don’t Let the Scammer Win
If you’ve been scammed in crypto, remember: it’s not your fault. These fraudsters are clever, but you’re smarter now. With evidence, awareness, and a little legal guidance, you can fight back—and maybe even help others avoid the same fate.
👉 Take action now: Report the scam, file a legal notice, and speak to a cybercrime lawyer. The sooner you act, the stronger your case.
Need help drafting a legal notice or filing a cyber complaint?
Our legal experts can guide you through the process step by step.
📧 Contact us today for a complimentary consultation.