Rajasthan Crypto Fraud: How Fake Investment Scheme and SUV Promises Netted Over Rs 20 Crore

A sophisticated cryptocurrency fraud operation that combined fake investment schemes with promises of luxury SUVs at deeply discounted prices has netted over Rs 20 crore from thousands of victims across India, according to Rajasthan's Special Operations Group (SOG). The operation, which utilized a custom digital currency called HVT Coin, social media marketing, and elaborate promotional events, represents one of the most complex financial fraud cases uncovered in recent years.

The latest arrest in the ongoing investigation brings to light how criminal networks are increasingly exploiting both cryptocurrency technology and traditional social engineering to bypass regulatory safeguards and target vulnerable investors through digital platforms.

Background and Context

The fraudulent scheme operated through a multi-layered approach that combined elements of pyramid schemes, cryptocurrency investments, and consumer fraud. According to law enforcement officials, the operation began with the creation of www.harvestusdt.com, a website designed to appear legitimate to potential investors. The platform charged Rs 250 for user IDs, ultimately enrolling approximately 82,000 people and generating around Rs 2 crore in initial revenue.

Criminal networks targeting Indian investors have grown increasingly sophisticated in recent years, leveraging the relative novelty of cryptocurrency to confuse victims and exploit regulatory gaps. The rapid adoption of digital payment systems and social media platforms has created new vulnerabilities that fraudsters can exploit at scale, according to financial crime experts.

Key Figures and Entities

The investigation centers on two main perpetrators: Banshilal alias Prince Saini, previously arrested and now considered the mastermind of the operation, and Rajneesh Kumar, a software developer from Roorkee who was arrested on January 1, 2026. According to SOG ADG Vishal Bansal, Kumar provided the technical expertise required to develop the fraudulent cryptocurrency infrastructure.

Corporate records show that Prince established Harvest AI Technology Private Limited, appointing himself as director and his fiancée as co-director, providing a veneer of legitimacy to the operation. Other associates identified in the case include Mamta Bhati and Dinesh Bagri, who were previously arrested in connection with the fraud.

The operation specifically targeted vulnerable investors through social media campaigns promising unrealistic returns and luxury goods at suspiciously low prices—a tactic that has proven increasingly effective in India's rapidly expanding digital economy.

Legal and Financial Mechanisms

The fraud employed several interconnected mechanisms to extract funds from victims while obscuring the paper trail. After collecting initial fees through the harvestusdt.com platform, the perpetrators created HVT Coin—a digital currency with no legitimate underlying value or blockchain infrastructure. Victims were charged Rs 2,360 to create investment accounts for this cryptocurrency, generating approximately Rs 4.92 crore through 336 transactions.

Perhaps most audaciously, the operation promised Mahindra Scorpios for Rs 5.90 lakh and Toyota Fortuners for Rs 12 lakh—prices substantially below market value. These offers were promoted extensively across social media platforms, culminating in a 'Double Century Reward Ceremony' held in Bhopalgarh on October 15, 2025, where the fraudsters promised to distribute 250 Scorpio SUVs.

According to investigators, this event alone extracted approximately Rs 15 crore from 251 attendees, none of whom received the promised vehicles. The perpetrators allegedly used large donations to social and religious organizations to build credibility and demonstrate apparent financial success.

To further complicate recovery efforts, the accused converted a substantial portion of the defrauded funds into USDT, a fiat-backed stablecoin, and listed their fraudulent HVT Coin on cryptocurrency exchanges, creating additional layers of obfuscation for investigators.

International Implications and Policy Response

This case highlights growing challenges in regulating cryptocurrency operations that blend digital financial products with traditional fraud schemes. The use of stablecoins like USDT for money laundering purposes has become increasingly concerning to international financial regulators, as these assets can cross borders quickly while appearing legitimate on the surface.

Indian authorities have been working to strengthen regulatory frameworks around cryptocurrency, but cases like this demonstrate how quickly fraudsters can adapt to new enforcement measures. The cross-border nature of cryptocurrency transactions presents particular challenges for local law enforcement agencies, requiring international cooperation and sophisticated technical capabilities to trace and recover assets.

The case also underscores the need for enhanced investor education regarding cryptocurrency risks, as many victims appeared to be attracted by the combination of new technology promises with traditional consumer fraud tactics. Financial literacy advocates point to such cases as evidence of the urgent need for more robust public awareness campaigns about digital financial products.

Sources

This report draws on official statements from the Rajasthan Special Operations Group, court documents related to the case, and public records from corporate registries. Information was also obtained from law enforcement press releases issued in January 2026 regarding the arrest of Rajneesh Kumar. The total fraud amount represents a compilation of figures released by investigating authorities across multiple phases of the operation.