Jaipur court orders return of seized cryptocurrency to cyber fraud victim

Jaipur: In a landmark development for cybercrime enforcement in Rajasthan, a court has ordered the transfer of recovered cryptocurrency directly back to a fraud victim, making it the first case in the state where digital assets will be returned in their original crypto form after judicial approval.

The order follows the arrest of two accused involved in an online crypto fraud, where nearly Rs. 9 lakh worth of digital currency was siphoned off by posing as overseas traders. The Jaipur cyber crime police not only traced the stolen cryptocurrency but also secured court permission to restore it to the victim’s wallet, marking a significant precedent in handling crypto-related offences.

According to police officials, the accused approached the victim through WhatsApp using a fake SIM card and introduced themselves as legally authorised crypto traders operating out of Dubai. To gain the victim’s confidence, they first carried out a small cryptocurrency transfer. Once trust was established, the victim was convinced to move his entire crypto holdings to a wallet shared by the accused under the pretext of verification and secure trading.

Soon after the transfer, the cryptocurrency was diverted to multiple wallets and the accused stopped responding. Realising he had been cheated, the victim lodged a complaint with the cyber police, stating that he had lost crypto assets worth nearly Rs. 10 lakh.

Following the complaint, a special investigation team was formed under senior cyber crime officers. During the probe, police recovered 9,991 USDT, valued at approximately Rs. 8.96 lakh, from a concealed Trust Wallet found on the mobile phones of the accused. Investigators said the accused repeatedly attempted to mislead the police by claiming they did not possess the private keys required to access the wallet. However, cyber forensic experts successfully traced the private key, enabling full recovery of the assets.

The accused have been identified as Murari Lal Saini and Ravi Kumar Meena, both residents of the Lalsot area in Dausa district. Police officials said the duo used technical knowledge and psychological manipulation to target investors who were new to cryptocurrency trading.

Deputy Commissioner of Police (Crime) Abhijit Singh said the case highlights that cryptocurrency-related crimes are traceable and recoverable with timely reporting and technical investigation. He added that the court’s decision to allow the direct transfer of crypto assets back to the victim is a major step forward in recognising digital assets as recoverable property under criminal law.

The victim, police said, had initially purchased cryptocurrency worth around Rs. 11 lakh after completing KYC registration on Binance and had begun trading legally. The fraud occurred when he relied on unsolicited online advice and transferred his assets to a third-party wallet without verification.

Cyber crime officials have issued a fresh advisory urging investors not to transfer digital assets to unknown wallets for verification or trading assurances. They stressed that genuine crypto platforms do not require users to hand over control of their wallets or private keys.