Cryptocurrency
Crypto P2P scams in India show digital asset education is needed
Peer-to-peer (P2P) cryptocurrency trading has been a staple of the cryptocurrency community since the industry’s early days.
P2P trading refers to the direct exchange of cryptocurrencies between two users without the involvement of intermediaries. P2P exchanges link buyers and sellers while also adding an extra degree of security through an escrow service. Some of the key advantages of P2P over centralized exchanges include global accessibility, a variety of payment alternatives and no transaction fees.
Furthermore, P2P marketplaces have become crucial for crypto traders and enthusiasts in jurisdictions where governments are hostile to formal cryptocurrency exchanges and service providers.
In India, they became a lifeline for many crypto traders when the country’s central bank issued a banking ban on cryptocurrency businesses in April 2018.
Although the banking ban was eventually lifted by the Supreme Court in March 2020, P2P platforms continue to play a crucial role as banks remain sceptical about offering services to crypto exchanges due to a lack of regulatory clarity.
During the bull market in 2021–2022, India saw a significant surge in crypto trading volumes and crypto platforms, prompting the government to take notice of the nascent ecosystem.
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While industry leaders demanded a comprehensive regulatory framework, which has been under development since 2019, the Indian finance minister announced a 30% tax on crypto profits in 2022.
The heavy tax, in addition to the continuing lack of regulatory clarity, has been the bane of the budding Indian crypto ecosystem, deterring Indian investors away from the market.
While mainstream crypto exchanges struggled, P2P platforms saw their volumes skyrocket.
How P2P scams happen
This rise in P2P trading volume also led to significant uptick in P2P scams. These scams often use stolen banking data or lure customers with fake promises of high profits and then use their banking information to scam P2P users.
Earlier in July, two people were arrested in the Indian city of Ujjain in connection with a Binance P2P scandal. The police recovered several fake bank accounts, ATM cards and documents from the accused, who were allegedly buying fake IDs and personal data for 1,500 Indian rupees ($18) in order to scam users of Binance P2P.
Two Accused In Binance P2P Scam Arrested In Ujjain, India
Two accused of scamming people on #Binance P2P arrested by police in Ujjain, India. Many fake bank accounts, ATM cards and documents are seized from accused
The accused used to buy Fake ID Proofs and personal data… pic.twitter.com/Nt5GxhVmio
— Ajay Kashyap (@EverythingAjay) July 11, 2023
One way P2P scammers steal user data is with the help of fake crypto-centered channels on Telegram that promise high profits or airdrops. Many gullible users looking to make a quick profit often join these channels and share their personal banking information. In many other cases, the scammer simply buys or steals the user’s personal information.
The stolen data is then used to create a P2P account on any popular P2P platform — Binance and WazriX are common in India.
The scammer then initiates a buy order on the P2P platform looking for unsuspecting sellers. Once they match with a seller, they send the money to the seller using the victim’s account. Thus, they complete the P2P transaction on the platfrom where the buyer receives the cryptocurrency and the seller receives the money in their bank account.
The buyer (scammer) then vanishes with the crypto and the victim whose bank account was used to send the money only realizes it after the money has been deducted from their bank account.
The victim then lodges a complaint with the police whose first step is to freeze all bank accounts that the victim has interacted with during the scam phase.
This action from the police triggers an extended account freeze for unsuspected sellers of the P2P platform who only realize they were involved in the scam after they get a call from the police or their bank informs them that their account has been frozen.
In one instance, a seller, who wished to remain anonymous, received a “bank account frozen” message while trying to pay for a taxi. After contacting the bank, the seller learned that the halt was requested by the police’s cyber division responsible for looking into online crimes.
When the seller then followed up on the complaint with the police and enquired about the freeze on the account, they were met with threats of legal consequences from the Enforcement Directorate, India’s economic intelligence agency, for a $40 P2P completed transaction on WazirX in October 2022.
The police complaint was filed by a woman who was scammed out of $30,000 between September 2022 and June 2023. The police started the investigation and froze every bank account that interacted with the plaintiff’s accounts during the mentioned time frame, including the sellers for the October transaction.
The seller tried to explain to the police officer that they had successfully completed the P2P transaction and thus have no role in the scam. Despite this, the police ignored their claims, erroneously claiming that crypto transactions are illegal and stating that they must pay the complainee $40 or face further legal action.
With no other options left, the victim eventually paid the $40 amount to the plaintiff’s account after which the police released an order to unfreeze the account.
The police did not respond to Cointelegraph’s request for comment.
The bank account restrictions limit unsuspected victim’s access to cash, and the complexities involved in getting the issue fixed are significant. The seller — who often is also unaware of the scam until the last moment — could be subject to a legal investigation or be required to provide evidence.
Problem using P2P in India still continues. @cz_binance do something. @TheOfficialSBI Got my account frozen. pic.twitter.com/Y6By4l5RGy
— Balamurugan Lakshmanan (@balamurugankl) July 11, 2023
There have been several instances of such P2P scams over the past year where victims noted their fear of authorities, with police often threatening legal actions. The anonymous seller told Cointelegraph that their account was frozen with 50,000 rupees in it, adding that they are very afraid of how to approach authorities and whether they would face legal consequences.
Some advise against P2Ps
Due to a lack of clear guidelines around crypto-related crimes and a lack of understanding of the technology underpinning cryptocurrencies, police investigations often start with freezing the accounts of anyone involved in the situation.
Pushpendra Singh, a prominent crypto personality and educator in the Indian crypto ecosystem, told Cointelegraph that scammers take advantage of the police’s ignorance of how crypto works:
“What these scammers do is they often use platforms, such as international Binance platform, to evade investigation from the Indian authorities, as it becomes quite difficult for the authorities to demand documents from such international platforms. Scammers then take the stolen USDT to Trust Wallet or any other non-KYC’d platform to avoid being tracked. While scammers get away with the money, both buyer and seller in the transaction face financial and legal consequences.”
Singh said that Indian police need to be actively trained on how these scams work. He noted that the “lack of awareness around the nascent tech also leads to victim harassment where many victims are often told by the police that crypto transactions are illegal in India.”
P2P scams have become very common and concerning to the point where the majority of crypto experts in India have now asked traders to avoid P2P trading. Sumit Gupta, CEO of CoinDCX — a major crypto exchange in India — said crypto traders should avoid P2P transations.
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He said that many people in India got a notice from various government authorities just because they unknowingly sent money from someone who wasn’t the right person to deal with.
Guys, P2P is extremely risky. I’ve been telling folks to avoid using any kind of P2P platforms, it’s an open invitation to trouble.
I know so many people in India got notice from various govt authorities just because they unknowingly sent INR or received INR from someone who… https://t.co/3CoyceiPwP
— Sumit Gupta (CoinDCX) (@smtgpt) April 28, 2023
Other crypto personalities have urged traders to be vigilant and make sure the P2P account one is interacting with has a good history.
What started out as a crypto revolution has turned into a weak spot for the Indian crypto ecosystem.
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TL;DR
- Analysts cite bullish chart patterns to envision potential price breakouts above $3 and even a new all-time high of over $4.
- A rising outflow of ADA from exchanges to self-custody wallets suggests strong holding behavior, while Grayscale’s proposed spot ETF (now awaiting SEC approval) could open the floodgates to mainstream investment if approved.
Time for Another Pump?
Cardano’s ADA has been underperforming over the past two weeks, with its price dropping by 5% during that period to the current $0.77 (according to CoinGecko’s data). Despite the downtrend, many market observers remain optimistic in their predictions.
Hardy, an X user with more than 70,000 followers, thinks ADA looks solid at its ongoing level. Furthermore, they argued that the asset’s “epic bull run” has not yet started.
$ADA looks solid here, hold above this purple box, we will continue higher.
If you’re in SPOT currently, you’re golden, the epic bull has not started for Cardano. pic.twitter.com/iqMe1aOzu8
— Hardy (@Degen_Hardy) July 31, 2025
X Finance Bull described ADA as “one of the biggest sleeper gains in crypto right now. The X user believes the valuation is poised to surpass $3, adding that a new all-time high is closer than some might think.
Smith also chipped in, spotting the formation of a “monstrous cup and handle” on ADA’s price chart. This is a bullish pattern that signals the potential for a major rally. Smith believes the valuation could explode above $4 once it exceeds the breakout target of $0.92.
Those interested in exploring additional price forecasts for Cardano’s native token can refer to our previous dedicated article here.
The Bullish Indicators
According to CoinGlass’s data, there has been a significant shift of ADA tokens from centralized exchanges toward self-custody methods in the past several months. This is considered bullish since it reduces the immediate selling pressure.
The potential launch of a spot ADA ETF can also positively impact the price. The leading digital asset manager, Grayscale, displayed its intentions to introduce such a product in the USA in February of this year. The decision is now in the hands of the US Securities and Exchange Commission (SEC).
Such an investment vehicle will give investors additional and simplified options to gain exposure to ADA. After all, buying a spot ETF is like purchasing regular stocks, all done via standard brokerage accounts. In the aftermath, Investors own shares, while the fund holds the actual cryptocurrency on their behalf.
According to Polymarket, the approval odds before the end of 2025 stand at 83%.
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Ethereum’s ten-year milestone has been marked not just by reflection but by a steady rally that has investors bracing for what could be the cryptocurrency’s next big breakout.
With ETH trading at $3,800 at press time, still 24% below its all-time high, pseudonymous CryptoQuant analyst CoinCare says its subdued futures funding rates and deep-pocketed accumulation suggest the uptick is far from over.
The Funding Rate Divergence
According to CoinCare, Ethereum’s ongoing four-month rally is quite similar in magnitude to a previous surge that happened between the start of Q4 2023 and the end of Q1 2024. However, unlike that run, where funding rates became overheated, today’s futures funding levels remain near pre-rally lows.
“In the current rally, there has been no overheating in funding rates,” wrote CoinCare. “In fact, the current funding rates are closer to the levels seen before the October 2023 rally began.”
CoinCare believes this is a sign that “a cooldown after a short-term surge is essential,” following which ETH could “enter a full-fledged rally” driven by renewed speculative interest.
Beyond derivatives, fundamental and on-chain forces also support Ethereum’s potential breakout. For instance, heavyweight Ethereum investors recently acquired 220,000 ETH, worth an estimated $850 million, in just 48 hours. This boosted their holdings to 23.5% of the asset’s supply, a record high that should lessen market liquidity and amplify an upward push.
At the same time, spot ETH ETFs have attracted roughly $5 billion in just 17 days, adding steady demand from regulated investment vehicles. Meanwhile, exchange balances have plunged to a near-decade low of 19 million ETH, with more than 1 million coins withdrawn in the past month alone, potentially reducing immediate sell-side pressure.
Price Momentum
Looking at the market, ETH has gained 1.7% in the past 24 hours, 7.9% in the last week, and 57% across 30 days. It is currently trading within a tight $3,708 to $3,874 range, with $4,000 as the next key resistance level and $3,500 providing critical short-term support.
Analyst Ali Martinez believes going above $4,100 could trigger “the real breakout” for ETH, marking a major psychological shift and potentially opening the door for a run towards its 2021 all-time high.
Despite short-term warning signals, such as an overbought RSI and a potential pullback toward $3,300 highlighted in CryptoPotato’s latest analysis, the bigger on-chain picture remains decisively bullish. If CoinCare’s funding-rate thesis proves accurate and institutional demand continues to grow, ETH’s next chapter could be written not with caution but with new highs.
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TL;DR
- FTX staked $79M ETH after withdrawing $75M, signaling renewed activity from major crypto players.
- BlackRock now holds 2.5% of all ETH, adding $375M more through its growing Ethereum ETF.
- Eleven new whale wallets added 722K ETH since July, with most already staked for the long term.
- Ethereum ETFs saw $5.41B in July inflows, beating combined gains from the last eleven months.
FTX Moves ETH From Bybit, Then Stakes It
On-chain data tracked by Lookonchain shows that FTX and Alameda Research staked 20,736 ETH, valued at around $79 million, within the past few hours. The move follows a previous withdrawal of 21,650 ETH from crypto exchange Bybit. That withdrawal, carried out between December 17, 2024, and January 9, 2025, totaled $75.3 million at an average price of $3,478 per ETH.
FTX/Alameda staked 20,736 $ETH($79M) an hour ago.
Between Dec 17, 2024, and Jan 9, 2025, FTX/Alameda withdrew 21,650 $ETH($75.3M) from #Bybit at an average price of $3,478.https://t.co/RBSW7DEx21 pic.twitter.com/5E0ku6WGni
— Lookonchain (@lookonchain) July 31, 2025
At the time of writing, ETH trades at $3,860. The price has increased 1% in the last 24 hours and 7% over the past seven days. These ETH transfers and staking actions add to a trend of growing market activity around the asset.
BlackRock and Other Firms Continue ETH Accumulation
BlackRock added $375 million in ETH to its holdings this week. The firm now controls about 2.5% of Ethereum’s total circulating supply, which translates to over $11.4 billion in ETH, based on current prices.
In addition, the iShares Ethereum ETF, launched in 2024, has now acquired more than 3 million ETH, according to Nate Geraci’s recent post. Since July 12 alone, it has added another 1 million ETH.
BLACKROCK BOUGHT $375M OF ETH THIS WEEK
THEY CURRENTLY HOLD 2.46% OF THE ETH SUPPLY WORTH $11.32B
THE LARGEST ASSET MANAGER IN THE WORLD IS BUYING $ETH pic.twitter.com/BksJOvUjdQ
— Arkham (@arkham) July 31, 2025
The Ether Machine, a company focused on ETH accumulation, bought 15,000 ETH this week for $56.9 million. This brings its total ETH holdings to over 334,000.
Meanwhile, it also confirmed that additional capital remains available for further ETH purchases. With this latest transaction, The Ether Machine now holds more ETH than the Ethereum Foundation.
SharpLink, a Nasdaq-listed company, made yet another purchase earlier today, adding 11,359 ETH, which brings its total to 449,276 (worth $1.73 billion). A significant portion of the newly acquired ETH has already been staked.
Whale Wallets Enter the Market With Billions in ETH
Eleven new wallets have acquired a total of 722,152 ETH, worth $2.77 billion, since July 9. Three of those wallets added 73,821 ETH, worth $283 million, in the past 24 hours. The data was tracked by Crypto Rover.
BREAKING:
WHALES KEEP BUYING MORE $ETH.
3 FRESH WALLETS JUST ACCUMULATED ANOTHER 73,821 $ETH ($283M).
SINCE JULY 9, A TOTAL OF 11 FRESH WALLETS HAVE ACCUMULATED 722,152 $ETH ($2.77B). pic.twitter.com/rnywoQdg07
— Crypto Rover (@rovercrc) July 31, 2025
Most of these new wallets are staking their ETH. This reduces the circulating supply and signals long-hold strategies. These new holders are joining a broader trend of long-term ETH accumulation by large entities.
ETF Inflows Surge in July
As we recently reported, Ethereum ETFs brought in $5.41 billion in net inflows during July. That figure is higher than the $4.21 billion combined inflows from the 11 previous months. Since their launch in July 2024, ETH ETFs have received $9.62 billion.
Earlier in the year, flows were more uneven. The first quarter of 2025 saw low inflows and a brief outflow in March. By contrast, November and December 2024 saw stronger interest, with inflows of $1.05 billion and $2.08 billion, respectively.
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