By : Adv. Ayantika Mondal, BA, LL.B., LL.M,
Assisted by:- Kaulav Roy Choudhury
The Seemingly Innocent Exchange
Imagine you’re a crypto seller on a P2P platform (e.g., Binance, WazirX, KuCoin). A buyer named Aditya reaches out to purchase $800 worth of USDT. He transfers the money directly to your bank account, and per protocol, you release the USDT to his wallet.
Simple? Think again.
Behind the Scenes: A Scam Unfolds
Aditya’s Real Game: A Lottery Scam
Aditya contacts Meera, claiming she has won $200,000 in a lottery. To ‘claim her prize,’ Meera is asked to transfer $800 as a processing fee. Believing the scam, Meera transfers $800 to your bank account, as instructed by Aditya.
You’re Unwittingly Trapped
You receive $800 from Meera (a stranger to you). Thinking it’s Aditya’s payment, you release $800 worth of USDT to his wallet. Aditya walks away with the crypto. Meera realizes the scam and files a complaint on cybercrime.gov.in or calls 1930.
The Fallout: Bank Account Frozen
Cyber Cell Intervention
Your bank account is frozen. You are now listed as a suspect or layer in a cybercrime investigation. All incoming and outgoing transactions are halted.
The Harsh Truth
You were only doing a legitimate trade, but:
– Aditya used you as a money mule.
– Meera lost her money.
– You lost your crypto.
– Your reputation and banking access are now at stake.
Understanding Legal Exposure
Under Indian Cyber Laws and BNSS/CrPC:
– Receiving proceeds of crime unknowingly can still trigger investigation under:
– Section 66D of the IT Act (cheating by impersonation using computer resources),
– Sections 420, 406 IPC (cheating and criminal breach of trust),
– And money laundering red flags under PMLA if funds are traced to fraud.
How to Protect Yourself in P2P Transactions
- Use Platform Escrow Systems ONLY:
– Never bypass the official P2P escrow system.
– If you’re a seller, release crypto only after verifying the buyer’s identity via KYC (if provided by the platform).
2. Check the Sender’s Name:
– If the payment is made by someone other than the buyer, pause the transaction.
– Ask the buyer: “Who is transferring the money and why?”
3. Don’t Accept Third-Party Transfers:
– Reject payments that do not match the name of the buyer.
– Platforms like Binance and WazirX strictly advise against this.
4. Maintain Records:
– Keep screenshots of chats, transaction IDs, and P2P order history.
– These documents are crucial when defending your case.
5. Act Immediately if Suspected:
– If you realize you’ve received suspicious funds, do not release the crypto.
– Report to the P2P platform and lodge a preventive email complaint to the cyber cell.
– You can even file a police intimation letter that you’ve received a suspicious fund—this can later protect you.
If You’ve Been Framed: Steps to Take
- Contact your bank for details of the freeze and the origin of the cyber complaint.
2. Gather all transaction details, including crypto order screenshots, bank statement, and communication with the buyer.
3. Reach out to the investigating officer (I.O.) to clarify your role and provide documents.
4. Engage a cybercrime or criminal lawyer to:
– Draft a representation.
– File a petition under Section 451/457 CrPC (or 497 BNSS) to unfreeze your account or release funds.
5. File your own cyber complaint, asserting that you were duped and impersonated by the real scammer.
Conclusion: The Decentralization Dilemma
P2P trading offers flexibility, but decentralized transactions come with decentralized risks. Without institutional safeguards, sellers can easily be caught in scams orchestrated by professional fraudsters.
Be vigilant.
Stay informed.
Don’t become a scapegoat.
Advocate A.M. Iktear Uddin, known as Anik, and Advocate Ayantika Mondal are distinguished partners at Prime Legal. With over 15+ years of experience, both specialise in cybercrime, criminal, civil, and family law, corporate law, family law, PMLA compliance, and transaction monitoring and has served as a Special Public Prosecutor for Karnataka in several high-profile cases, earning recognition as one of the best cyber crime lawyers in Bangalore., holding top academic honors from Bangalore University. Together, they bring a powerful blend of litigation, corporate advisory, and family law expertise, leading Prime Legal with a commitment to excellence and innovation in the legal field.
