ZachXBT: Indian fraud gang suspected of conducting social engineering attacks to steal crypto and "self-reporting to police" to trace frozen funds

Odaily Planet Daily reports that "on-chain detective" ZachXBT released a case analysis stating that in a crypto asset case involving an Indian fraud gang, the individuals involved reported themselves to law enforcement after their assets were frozen, drawing attention.

The incident began when a user sought help from ZachXBT, claiming that approximately 5.73 BTC (about $475,000) was frozen on Changelly in March 2025. Subsequent on-chain analysis revealed that these funds could be traced back to multiple social engineering attacks targeting US users and Bitcoin ATM-related thefts, with cumulative losses exceeding $1 million and involving several elderly victims.

Investigations showed that the individual provided multiple different explanations for the source of the funds, including "loans," "transfers from the boss," and "investments from 2014–2015," with clear contradictions in the chain of evidence.

More notably, the user filed a police report in India in December 2025 attempting to recover the frozen funds (case number 3207-P/2025). Subsequent on-chain forensics and email data analysis indicated that the individual may have acted as a money "mule," with some bank documents inconsistent with their identity information.

ZachXBT stated that such cases demonstrate that social engineering attacks and cross-border fund transfers continue to occur, reminding users to avoid interacting with funds from suspicious sources to prevent triggering compliance freezes or legal risks.