Crypto News India – On July 8, 2025, Binance collaborated with Ahmedabad’s Cyber Crime Branch to dismantle a ₹1.75 crore ($200K) cross-border crypto scam, as reported. The operation, targeting seniors and jobseekers, involved laundering funds through stablecoin USDT, highlighting risks in India’s crypto ecosystem. For StablecoinNews.org readers tracking stablecoin examples, this underscores the importance of secure platforms amid rising stablecoin adoption.
The scam used “digital arrest” tactics, coercing victims into transferring funds to crypto wallets. Binance’s blockchain forensics traced USDT transactions, leading to eight arrests in Uttar Pradesh. This aligns with global concerns about stablecoin misuse, as noted in the Atlantic Council’s July 8 report on fraud risks. India’s high crypto adoption, ranked No. 1 globally , makes it a target for such schemes, despite strict regulations like the 18% GST effective July 7.
Unlike the U.S.’s GENIUS Act legislation, which mandates audited reserves for stablecoins (per GENIUS Act senate passage on June 17), India’s framework lacks specific stablecoin rules, increasing vulnerability. Binance’s role needs to be praised but India needs stronger oversight. The bust may boost trust in regulated exchanges, impacting the stablecoin list and stablecoin prices, but highlights the need for India to align with global standards like the GENIUS Act bill to protect users.
