ZachXBT: Indian Scam Gang Suspected of Social Engineering Theft and "Self-Reporting" to Police to Recover Frozen Funds
Odaily Planet Daily News "On-chain detective" ZachXBT released a case analysis stating that in a crypto asset case involving an Indian scam gang, the relevant individuals instead "self-reported" to law enforcement after their assets were frozen, sparking widespread attention.
The incident originated when a user sought help from ZachXBT, claiming that approximately 5.73 BTC (worth about $475,000) had been frozen on Changelly in March 2025. Subsequent on-chain analysis showed that these funds could be traced back to multiple social engineering attacks targeting US users and Bitcoin ATM-related thefts, with the total amount involved exceeding $1 million, including several elderly victims.
Investigation revealed that the individual's explanations for the source of the funds changed multiple times, including different accounts such as "loans," "transfers from the boss," and "investments from 2014–2015," with clear contradictions in the chain of evidence.
More notably, in December 2025, the user filed a police report in India attempting to recover the frozen funds (Case Number 3207-P/2025). Subsequent on-chain forensics and email data analysis suggested that the user may have been a "money mule" for transferring funds, with some bank documents inconsistent with their identity information.
ZachXBT stated that such cases show social engineering attacks and cross-border fund transfers are still ongoing, and reminded users to avoid interacting with funds from suspicious sources to prevent triggering compliance freezes or legal risks.
