The Doxy crypto scam involved four Nagpur residents defrauding an Ahmedabad businessman of over ₹2.05 crore through false promises of high USDT investment returns. Posing as a legitimate firm, they displayed fake profits before blocking withdrawals and vanishing, highlighting risks in unregulated crypto schemes.
-
Doxy scam details: Accused used a bogus website to show growing wallet balances, luring repeated investments from the victim since August 2022.
-
Victim recovered only ₹13.19 lakh amid excuses of server issues; additional ₹55,850 paid as brokerage fee.
-
Broader trend: Similar crypto frauds in Gujarat defrauded victims of ₹56.47 lakh and ₹31.5 lakh in October, per Ahmedabad Police reports.
Doxy crypto scam exposes dangers of fake USDT investments in India. Ahmedabad Police probe reveals ₹2.05 crore fraud—learn how it happened and protect your assets today.
What is the Doxy crypto scam?
The Doxy crypto scam refers to a fraudulent investment scheme orchestrated by four individuals from Nagpur who deceived an Ahmedabad-based businessman out of more than ₹2.05 crore. Posing as representatives of a fictitious company named Doxy, the perpetrators promised assured high monthly returns on investments in USDT, a stablecoin pegged to the US dollar. The victim, enticed by fabricated profit displays on a sham website, made multiple transfers starting in August 2022, only to face withdrawal barriers and eventual disappearance of the funds.
How did the fraudsters execute the Doxy crypto scam?
The scheme began when the victim’s brother introduced him to the accused, who presented Doxy as a reliable crypto platform specializing in USDT trades. They demonstrated seemingly authentic wallet entries showing escalating profits, building trust and encouraging larger deposits. According to the complaint filed with the Economic Offences Wing (EOW) of Ahmedabad Police, the victim, Bunty Kanaiyalal Sangtani, a readymade garment shop owner from Nana Chiloda, transferred funds incrementally, believing in the returns.
Key to the deception was the lack of victim control over the digital wallets; access remained solely with the fraudsters, identified as Jay Balram Kakwani, Namdev Rajkumar Mirani, Nikhil Tejram Tawale, and Sanjay Hariram Hemrajani. When Sangtani attempted withdrawals, the group cited “technical errors” and returned just ₹13.19 lakh, while pocketing the rest along with a ₹55,850 brokerage fee via PhonePe to Tawale. Investigations suggest the operation targeted multiple investors across states, using social engineering to exploit crypto enthusiasm.
A senior EOW official noted, “The accused employed sophisticated tactics, including luxury gift promises and urgent investment pressures, to extract funds quickly.” Police have invoked sections on cheating, criminal breach of trust, and conspiracy under the Bharatiya Nyaya Sanhita, with probes into transaction trails ongoing. This case underscores the vulnerabilities in peer-to-peer crypto deals without verified platforms.
Frequently Asked Questions
What are the signs of a Doxy-like crypto investment scam in India?
Watch for unsolicited offers via social media or contacts promising guaranteed high returns on USDT or other cryptos, fake dashboards showing unreal profits, and pressure to invest more without withdrawal access. In the Doxy case, victims saw initial small payouts to build credibility before larger sums vanished—always verify platforms through official regulators like SEBI.
How can I avoid falling victim to crypto frauds similar to the Ahmedabad Doxy scam?
To protect yourself, stick to licensed exchanges and avoid schemes offering assured returns, as cryptocurrency markets are inherently volatile. Research thoroughly, use hardware wallets for control, and report suspicious activity to cybercrime portals immediately—staying informed on rising scams in Gujarat and beyond keeps your investments secure.
Key Takeaways
- Rising crypto frauds in India: Cases like Doxy highlight how scammers exploit USDT’s stability with fake platforms, affecting victims across states.
- Police action and warnings: Ahmedabad EOW’s investigations emphasize tracing digital trails; authorities urge vigilance against social media lures.
- Investor protection steps: Verify credentials, avoid unsolicited tips, and consult financial experts before crypto investments.
Conclusion
The Doxy crypto scam exemplifies the perils of unregulated crypto investment fraud in India, where fraudsters leverage promises of quick USDT gains to siphon millions from unsuspecting individuals. As seen in Ahmedabad and other Gujarat incidents, including the ₹56.47 lakh Telegram scam in Gandhidham and ₹31.5 lakh Facebook ploy in Rajkot, these schemes are evolving with digital tools. With ongoing probes by local police and calls for awareness from officials, investors must prioritize due diligence. Stay proactive: Educate yourself on secure practices and report anomalies early to safeguard the burgeoning crypto ecosystem.
The accused lured investors with fake promises of high returns and luxury gifts through a bogus Doxy crypto scheme, vanishing after taking their money.
The Economic Offences Wing (EOW) of the Ahmedabad Police has lodged a case against four individuals from Nagpur for allegedly cheating a city-based businessman of more than ₹2.05 crore through a fake cryptocurrency investment scheme. The accused are said to have enticed the victim with promises of high monthly returns from a company called Doxy, which claimed to deal in crypto investments using USDT.
The complaint was filed by Bunty Kanaiyalal Sangtani, a resident of Nana Chiloda in Ahmedabad, who owns a readymade garment shop. According to police, the accused, identified as Jay Balram Kakwani, Namdev Rajkumar Mirani, Nikhil Tejram Tawale, and Sanjay Hariram Hemrajani — all residents of Nagpur were part of a well-planned conspiracy to cheat Sangtani through a fake investment setup.
How the fraud unfolded
Back in August 2022, Sangtani said his brother, Jay Kakwani, told him about a company called Doxy that claimed to offer “high and assured monthly returns” through investments in USDT, a popular crypto stablecoin.
At first, it all looked genuine. The accused showed him what appeared to be real “wallet entries” on the Doxy website, reflecting profits that seemed to grow with each investment. Believing the figures to be true, Sangtani kept putting in more money.
But when he eventually tried to withdraw his funds, he discovered that he had no control over them; the access rested entirely with the accused. That’s when he realised he had been deceived.
Despite repeated assurances, he only received ₹13.19 lakh back, with the group blaming “technical errors in the company’s server.” Sangtani also transferred ₹55,850 via PhonePe to Nikhil Tawale as a brokerage fee, but the remaining ₹2.05 crore and promised profits were never returned.
According to investigators, the group may have used similar tactics to cheat investors across states. “The accused lured the complainant with promises of extraordinary returns and luxury gifts under the pretext of a Doxy company scheme. After receiving the funds, they stopped communication and failed to return the invested money,” said a senior EOW official.
The police have registered the case under sections of cheating, criminal breach of trust, and criminal conspiracy under the Bharatiya Nyaya Sanhita. Further investigation into the money trail and digital wallet transactions is ongoing.
Series of crypto scams across Gujarat
The Ahmedabad case is the latest in a growing series of cryptocurrency scams reported across Gujarat this month.
On October 10, a 51-year-old man from Gandhidham, originally from Pune, lost ₹56.47 lakh in a Telegram-based crypto trading scam run through a group called Conforge Finance. The victim, Kishor Nargundkar, was introduced to the group by a woman named Deepa, who promised high returns on small investments. Over time, he made 38 transactions between June 25 and September 8, only to realise he had fallen into a trap.
A few days earlier, on October 8, Hardik Umraniya, a 35-year-old medical representative from Rajkot, was cheated of ₹31.5 lakh after accepting a friend request from a stranger on Facebook. What began as casual chats soon turned into investment advice — the scammer persuaded him to invest in USDT, showing small profits at first before vanishing with the rest of the money.
Authorities warn of rising crypto frauds
Police said these scams are becoming smarter, with fraudsters now using social media and messaging apps to tempt people with promises of quick profits. They added that investigations in all three cases are still on, and urged people to stay alert and avoid falling for online schemes that claim to double money or offer guaranteed returns.
Also Read: India Targets Offshore Binance Crypto, 400+ Traders Under Probe
Follow The COINOTAG on Google News to Stay Updated! 
