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The head of the corporation is suspected of cryptocurrency fraud involving 1,000 victims., 2026/04/01 14:43:14
The West Bengal police in India have apprehended Pawan Kumar Ruia, the founder and chairman of the prominent industrial firm Ruia Group. The businessman is suspected of involvement in a fraud scheme related to money laundering through cryptocurrencies.
According to the National Cyber Crime Reporting Portal (NCRP), Ruia and his associates may be linked to 1,379 complaints of cyber fraud. The total amount allegedly siphoned off through the scheme is approximately 315 crore rupees (around $34 million). Authorities believe the actual damage could be even higher—600 crore rupees ($64 million).
The investigation was initiated following a complaint lodged in April 2024 by an elderly man. He claimed that unknown individuals persuaded him to install a mobile application called KKRMF, which promised high returns on investments in stocks and cryptocurrencies. As a result, the retiree lost 93 lakh rupees (about $100,000).
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The inquiry revealed that the anonymous creators of the application initially gained the trust of clients by providing small returns and allowing partial withdrawals. Subsequently, victims were added to a messaging group where discussions of substantial profits encouraged them to invest even more. When victims attempted to withdraw their funds, access to their accounts was blocked.
Law enforcement managed to trace the stolen funds through corporate accounts of 148 shell companies, many of which were registered at the same addresses. According to police, the accounts were managed with Ruia’s knowledge directly from the Ruia Centre office in Kolkata. Approximately 170 crore rupees ($12 million) of the total stolen amount was converted into cryptocurrency through international exchanges.
Pawan Ruia established Ruia Group in 1993, and in 2003, the group took control of the state-owned heavy engineering enterprise Jessop & Co., which has a 225-year history. Two years later, the businessman acquired the major tire manufacturer Dunlop India. Both companies eventually went bankrupt and came under state control.
In March, the police of the Indian state of Maharashtra arrested the co-founders of one of the largest Indian cryptocurrency exchanges, CoinDCX, Sumit Gupta and Neeraj Khandelwal. The entrepreneurs were charged with fraud and “deception for the purpose of property acquisition.” They were later released on bail.
