Police in Sambhal, Uttar Pradesh, have registered a fraud case after more than 150 people said they were cheated by promises of high crypto returns by renowned hairstylist Jawed Habib, his son Anas Habib, and at least three others, an India Today report said.
Victims say they were lured into investing in Binance Coin and Bitcoin through a firm called Follicle Global Company. The alleged scheme dates back to 2023 and came to light after investors filed complaints at Raisatti Police Station, India Today reported.
How were investors approached?
Police say the group held a meeting at the Royal Palace Banquet Hall in Sarayatreen, Sambhal. Attendees were offered guaranteed returns of 50% to 75% within a year. Many people agreed to put in money.
Some funds were moved into accounts linked to the firm. Authorities say one account belonged to a man named Saiful, who claimed to be a company director.
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KK Bishnoi, the Sambhal superintendent of police, told India Today that a group of victims came forward. He said they had been defrauded of lakhs of rupees, and Bishnoi said this prompted the registration of a case against Jawed Habib, his son Anas, Saiful and others.
He added that the accused shut down the company when investors asked for returns and then fled.
Bishnoi also said the matter is being treated as serious, and he assigned additional SP Alok Bhati to lead the probe. Police will examine bank transfers, meeting records and other documents to trace the flow of money.
Scope of the alleged scam
Investigators say the scheme targeted a large number of people, and around 150 investors attended the banquet meeting, police said. Many were persuaded to hand over substantial sums.
Some victims described seeing official-looking pitches and being told that their investments would grow fast and safely. When they later tried to withdraw funds or get promised profits, the company was no longer operating and contact with organisers stopped.
Possible charges and next steps
Police have filed the case under sections that cover serious fraud. The complaint names multiple accused and lists alleged steps that led to investor losses.
Officers plan to question witnesses, review transaction records and track where the funds went. If the accused are traced, they may face arrest and prosecution.
The allegations have shaken local investors, and many people who signed up say they now face financial strain. Some reported that they invested life savings or large sums meant for family needs.
The local community has demanded quick action from police and greater protection from such networks.
Wider concerns
Authorities are also watching for links to other illegal activity, and fraud cases involving crypto can sometimes tie into money laundering or unregulated foreign exchange.
Police will examine whether transfers crossed borders or were used to hide funds. The probe in Sambhal will look for those signs as it builds its case.