ZachXBT: Indian scam gang suspected of social engineering to steal coins and "self-reporting to police" to recover frozen funds

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, drawing attention.

The incident originated when a user sought help, 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 and Bitcoin ATM-related theft cases targeting US users, with cumulative losses exceeding $1 million and involving several elderly victims.

The investigation showed that the individual's explanations for the source of funds changed multiple times, including different accounts such as "loans," "transfers from the boss," and "investments made in 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 No. 3207-P/2025). Subsequent on-chain forensics and email data analysis suggested that the individual may have been a "money mule" for fund transfers, with some bank documents inconsistent with their identity information.

ZachXBT stated that such cases indicate that 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.