India's fight against cryptocurrency scams took a shocking turn when a police inspector, Chandradhar, became the villain. While investigating a 2020 Bitcoin scam, Chandradhar allegedly succumbed to the lure of easy money. He siphoned off INR 1.8 crore (roughly $216,000) worth of Bitcoin, not from the scammers, but from the very evidence he was supposed to protect.

This betrayal wasn't a solo act. Chandradhar, along with two other officers, Prashanth Babu and Lakshmikanthaiah, are accused of using their badges to manipulate evidence and steal Bitcoin. Their actions highlight the growing problem of crypto scams in India, pushing regulators to tighten their grip on the industry.

Meanwhile, India's crackdown on crypto-related fraud continues. In May 2024, authorities seized $11 million from a businessman suspected of receiving ill-gotten Bitcoin from a massive 2018 Ponzi scheme. This incident echoes the "Gain Bitcoin" scam, where over 8,000 victims lost a staggering INR 2,000 crore.

Chandradhar's arrest serves as a stark reminder: even those entrusted with upholding the law can be tempted. As India grapples with the complexities of cryptocurrency, vigilance and robust regulations are crucial to curb scams and ensure a safe digital future.