How I Got Trapped in a Crypto Scam in India — And What Every Investor Must Know Before Investing in Any Crypto Startup
Cryptocurrency is supposed to represent the future of finance — borderless, decentralized, and transparent. But for many Indian investors like myself, it has become a story of lost money, broken trust, and unanswered support tickets.
I invested my savings in Bitbns, a well-known Indian crypto exchange. Today, my funds are stuck, and like thousands of others, I have received no resolution, no real communication, and no accountability.
This blog post is a first-hand warning. If you're considering investing in any Indian crypto startup, I urge you to read this carefully.
🧨 The Red Flags I Ignored — So You Don’t Have To
1. No Real Support — Only Bot Replies
Every time I raised a support ticket, I got automated, copy-paste replies. No human responses, no effort to understand the problem. I now have over 100 identical replies. That’s not customer support — that’s a wall of silence.
2. Withdrawals for the Well-Connected Only
Over time, it has become painfully clear that only selected users — likely those with insider or political connections — are having their withdrawals processed. The rest of us, despite being verified investors with legitimate claims, are ignored. This points to a biased and opaque disbursement system that rewards influence over fairness.
3. Locked Wallets, Broken Withdrawals, and Unfair Rates
Crypto wallet withdrawals have been disabled entirely. INR withdrawals silently fail or remain pending for months. Meanwhile, Bitbns is operating at prices 30–40% below market value, pushing desperate users to sell at heavy losses.
4. Founder Now Leading Another VC-Funded Startup
Shockingly, Mr. Gaurav Dahake, founder of Bitbns, is now leading Onramp.money, a new crypto onramp service funded by venture capital firms like FunFair Ventures. This raises serious concerns about accountability in the startup and investment ecosystem.
🛡️ How to Protect Yourself from Crypto Scams in India
Before you invest your money into any Indian crypto platform or Web3 startup, here’s what you must do:
✅ 1. Research the Founders Thoroughly
Don't just read the website. Check their past ventures. Look for complaints on Twitter, Reddit, Telegram, Quora, and Trustpilot. A quick search can reveal red flags others have already experienced.
✅ 2. Don’t Trust the “VC-Backed” Label Blindly
Having venture capital backing doesn't guarantee ethical practices. Many investors don't dig into how founders are handling user funds. If a founder has mishandled investor money in the past, ask why they’re still being funded.
✅ 3. Test the System First
Deposit a small amount and test both crypto and INR withdrawals. If there's any delay, lack of transparency, or failed transfers — walk away.
✅ 4. Engage With Crypto Communities
Join active Telegram groups, X (Twitter) discussions, Reddit threads, and Discord communities. You’ll get unfiltered experiences from real users — far more insightful than company blogs.
✅ 5. Never Go All-In on a Single Platform
Always diversify across hardware wallets, global exchanges like Binance/Coinbase, and only the most reputable Indian platforms with clear compliance processes.
⚠️ Why Indian Crypto Startups Are Especially Risky Right Now
-
Lack of regulatory oversight
-
Weak consumer protection laws
-
Unaccountable founders
-
No mandatory proof of reserves
-
Delayed legal recourse for defrauded users
Until the regulatory environment improves and strict governance is enforced, you are your own best defense.
📢 Venture Capital Accountability is Crucial
It’s time for VCs in India and globally to step up. If you're investing in a startup where founders are sitting on stuck user funds, you’re not just enabling a business — you’re enabling financial injustice.
Investors, users, and regulators must demand:
-
Full fund transparency
-
Proof of reserves
-
Timely user withdrawals
-
Consequences for past mismanagement
✊ My Appeal
I’m Saket Agarwal. I’ve lost money. But I haven’t lost hope in the crypto ecosystem. What I have lost is faith in platforms that preach decentralization, but practice opacity.
If you’re reading this, I urge you to do your due diligence, ask tough questions, and never ignore red flags. Share this blog post if it resonates. Let’s build an ecosystem where trust is earned — not demanded.
Comments