Understanding Debit Freeze for P2P Traders & Strategies to Avoid it India 2024

A P2P merchant earns Two to Three thousand dollars per month in India by doing P2P trading on Binance, Paxful, etc. Peer-to-peer (P2P) trading involves buying or selling cryptocurrencies directly between individuals.

You started doing P2P Trading a while back and now your account is Frozen/Lien marked for Specific amount by Cyber Crime department, why and how did this happen when you didn't do anything?

Seek expert guidance on minimizing the risk of debit freezes as a P2P trader in India. Our paid consultations offer tailored strategies to safeguard your accounts and navigate potential pitfalls effectively. Speak to our experts today for personalized advice and proactive measures to keep your trading activities secure. Our experts can guide you towards foolproof methods to prevent any fund losses due to debit freezes.

The explanation lies in the prevalence of various online crypto scams in India, which operate on an extensive scale. These scams often manifest in the following forms: 

• On platforms such as Olx, Quikr and other online goods buy/sell websites, scammers often employ a USDT seller as a middleman to deceive individuals seeking to purchase old/used items. The scam typically involves the transfer of funds to the seller's account, with the scammer receiving USDT in return. Consequently, while the seller obtains the funds (INR), the scammer acquires the USDT. However, the innocent individual attempting to purchase the item loses their money in the process. Subsequently, they may report the incident to cybercrime authorities (online or by calling 1930) and file a complaint against the seller. In this scenario, the seller becomes the primary suspect, as the funds were directly transferred to their bank account, rather than the scammer's.
• Online job offers on WhatsApp, Facebook, Telegram, and Instagram: Numerous individuals in India are perpetrating this scam on a large scale. They initiate contact randomly through social media platforms mentioned above and offer employment opportunities requiring completion of various tasks. Payment is promised for each task. Once trust is established, they request funds for a task claiming it will multiply the sender's money by factors such as x2, x3, and so forth. Regrettably, some individuals fall victim to this scheme and send money to the scammers. Subsequently, the scammers vanish, leaving the victim to file cybercrime complaints. How does this involve you? These scammers utilize the ill-gotten funds from their scheme to purchase USDT from you. When cybercrime authorities trace the path of the fraudulent funds and freeze accounts associated with it, your account may also be frozen or marked with a lien.
• Online investment frauds involve various companies, including MLM, Forex, and nowadays, some crypto investors, as well as individuals. They offer fixed returns on investments monthly, enticing people to trust them with their funds. These Companies or Individuals will actually provide them good returns but only as long as the market favours their decisions. However, when faced with significant losses or driven by greed, they abscond with investors' money, leaving them defrauded. Consequently, some victims resort to filing cybercrime cases against the such companies. How does this implicate you? Given that USDT serves as a gateway currency for crypto trading and is also favored by many Forex exchanges (broker houses), it is highly probable that these investors purchased USDT from you at some point. Therefore, the disputed funds, now subject to cybercrime cases, were routed through your account, thereby implicating you in the fraudulent scheme.

Seek expert guidance on minimizing the risk of debit freezes as a P2P trader in India. Our paid consultations offer tailored strategies to safeguard your accounts and navigate potential pitfalls effectively. Speak to our experts today for personalized advice and proactive measures to keep your trading activities secure. Our experts can guide you towards foolproof methods to prevent any fund losses due to debit freezes.

• Video Links/Applications - Scammers attempt to send links to videos that might pique your interest (such as a viral pornographic video or one related to you personally) or they may send links to applications. Upon opening these links or clicking "Allow," as commonly requested by applications upon installation, users often grant permissions without careful consideration. Once permission is granted, the hackers or scammers gain access to the data on your phone, which they can exploit to steal money from your bank accounts. How does this relate to P2P? These hackers then utilize the stolen funds to purchase USDT from you through P2P transactions. Consequently, the individual whose phone has been compromised files a cybercrime complaint, implicating you in the chain of events and potentially leading to the freezing or lien marking of your account.
• Other scams: There are numerous other types of scams occurring in India. Surprisingly, some companies in India are hiring young individuals and offering them salaries to perpetrate scams. Unfortunately, ethical values and humanity seem to be at an all-time low for many, as money becomes the sole priority. These individuals won't hesitate to involve others, including you, in their illicit activities, transferring stolen money to you to purchase USDT. Consequently, avoiding this predicament while engaging in P2P transactions seems nearly impossible.
• Intentional Complaints: Certain crypto sellers engage in deceitful practices by initially purchasing crypto from you and then filing false complaints, alleging that you have scammed and stolen their money. As a result, your account gets frozen. Subsequently, they demand money from you in exchange for withdrawing the complaint.

Seek expert guidance on minimizing the risk of debit freezes as a P2P trader in India. Our paid consultations offer tailored strategies to safeguard your accounts and navigate potential pitfalls effectively. Speak to our experts today for personalized advice and proactive measures to keep your trading activities secure. Our experts can guide you towards foolproof methods to prevent any fund losses due to debit freezes.

DISCLAIMER

The contents of this article are for information purposes only and do not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that we are not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. CA Mitesh and Associates is India's leading Crypto Taxation Firm which is committed to helping people navigate complex tax laws and banking regulations. Our main aim is to assist the individuals with applicable laws & regulations compliance and providing support at each & every level to make sure that they stay compliant and grow continuously. For any query, help or feedback you may get in touch here - Appointment with CA. Please note the all consultations with the CA are Paid consultations.

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