The Growing Threat of Crypto Ponzi Schemes in India and the Need for Regulation

India’s crypto market is becoming a breeding ground for deception.

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The lure of sky-high returns, combined with the excitement of cutting-edge technology, has drawn in countless investors—many of whom end up losing everything. What begins as a golden opportunity to build wealth often unravels into a carefully crafted illusion, preying on trust and ambition. At the heart of these scams is a simple but dangerous trick: early investors are paid with money from newer ones. The illusion of success is sustained through flashy marketing, social media hype, and endorsements from so-called experts. As long as fresh money keeps flowing in, the scheme appears to work, creating an illusion of endless growth. However, the moment new recruits stop joining, the entire system collapses, leaving most investors in financial ruin. There are clear warning signs that indicate a Ponzi scheme. The biggest red flag? Guaranteed high returns that seem too good to be true. Legitimate investments involve risk, and any platform that claims otherwise is likely hiding something. Another telltale sign is secrecy—genuine crypto projects provide whitepapers with transparent details, while scams rely on vague ja