Police in Jaipur, a city in India’s Rajasthan state, have arrested two men, including the alleged mastermind, in a suspected INR 100 crore investment fraud involving fake cryptocurrency websites. Police said the accused allegedly promised investors high returns from property and crypto-related investments.
As per a report from The Times of India, Jaipur’s Sodala police station made the arrests as investigators continued to trace investor funds and identify others who may have been involved in the alleged scheme.
Police identified Mohit Kaloya, 27, as the alleged mastermind and said he was arrested in Gurugram. His alleged associate, Ghanshyam Kandela, 35, was subsequently arrested based on information obtained during Kaloya’s interrogation and other evidence, according to police reports.
Fake crypto websites used
According to investigators, the accused operated websites called Flinty-io and Flinty-live, which were presented as platforms for cryptocurrency or digital-coin investments.
The websites allegedly attracted investors with promises of substantial returns. Police said the accused also solicited investments through Easy Way Homes, offering opportunities linked to property and crypto investments. Police allege that the operation collected crores of rupees before it was shut down and the accused went into hiding.
Reports said the operation had an office in Jaipur’s Vaishali Nagar from around January 2025, where investors were allegedly approached with offers of high returns.
Investor allegedly paid Rs 5.55 crore
The case came to light after investor Rishi Mehta filed a complaint with Jaipur’s Sodala police station. Mehta alleged that Easy Way Homes persuaded him to invest by promising significant profits in a short period.
According to the complaint, he paid INR 1.55 crore through cheques and about INR 4 crore in cash, bringing his alleged payment to around INR 5.55 crore. When the promised repayment became due on January 1, 2026, he tried contacting the accused but found their phones switched off.
Police are investigating what happened to the money and whether similar complaints involving the two men are connected to the alleged investment network.
ED expands crypto forensics
The case comes as India’s Enforcement Directorate expands its digital-investigation capabilities. In September, the ED renewed a five-year agreement with the National Forensic Sciences University (NFSU) in Gandhinagar to strengthen cyber-forensic infrastructure, training and technical support.
The ED said NFSU has expertise in digital forensics, malware analysis, network forensics, and crypto and blockchain tracing. The renewed agreement includes support for establishing and upgrading cyber-forensic laboratories and providing advanced forensic tools and training.
The agreement does not create a separate crypto-forensics unit or give the ED new legal powers over digital assets. However, it adds technical expertise to the agency’s broader efforts to trace digital transactions and investigate financial crimes involving cryptocurrencies.
Police trace assets
As part of the investigation, police seized a Mercedes E 450 and a Triumph Street Triple motorcycle, with the vehicles together reported to be worth about Rs 1.25 crore. Police also froze a fixed deposit of around Rs 1 crore allegedly linked to the proceeds of the fraud.
Investigators recovered computers, a laptop and mobile phones from Kaloya. Police are examining the devices and financial transactions to determine whether the alleged proceeds were moved through cryptocurrency, trading platforms or other channels.
The investigation remains ongoing, with police seeking information on additional victims, other people connected to the alleged network and the movement of funds collected through the scheme.
Investigators are also examining whether cryptocurrency or trading platforms were used to move the alleged proceeds. The allegations remain subject to the ongoing police investigation and legal proceedings.
Also Read: Indian Trader Allegedly Duped of Rs 1.5 Crore in Crypto Scam
