Cryptocurrency Frauds Under Bns
⚖️ LEGAL CONTEXT: Cryptocurrency in Bangladesh
Legality: Cryptocurrency is not recognized as legal tender in Bangladesh. The Bangladesh Bank has declared transactions in cryptocurrency as illegal under current laws.
Applicable Laws for Fraud:
Bangladesh Penal Code (BNS):
Section 406 – Criminal Breach of Trust
Section 420 – Cheating and dishonestly inducing delivery of property
Section 409 – Criminal breach of trust by public servant, banker, etc.
Section 468/471 – Forgery and use of forged documents
Information and Communication Technology (ICT) Act 2006
Section 66 – Hacking-related offences
Section 54-57 – Data theft, identity fraud, digital forgery
🚨 CASES OF CRYPTOCURRENCY FRAUD – Explained with BNS Application
🧨 Case 1: The “Crypto MLM Ponzi Scheme” – 2021 (Dhaka)
Background:
A company called "Crypto Trade Bangladesh Ltd" falsely claimed affiliation with an international crypto platform and launched an MLM (Multi-Level Marketing) scheme. Investors were promised 300% return on Bitcoin investments within 6 months.
Fraud Details:
Over 1,500 people invested.
Investors were asked to bring others to earn commissions.
The owners disappeared with over 50 crore BDT in Bitcoin and cash.
Applicable BNS Sections:
Section 420 – Cheating investors
Section 406 – Criminal breach of trust with investor funds
Section 34 – Common intention (among multiple accused)
Section 409 – If organizers were holding themselves as financial agents
Legal Outcome:
Several were arrested by CID.
Assets frozen, but majority of funds untraceable due to transfer to foreign wallets.
⚙️ Case 2: The “Fake Crypto Exchange” Scam – 2022 (Chattogram)
Background:
A fake website named "BitQuickBD" was designed to mimic international exchanges. It allowed users to "buy" cryptocurrencies using Bkash/Nagad. No real crypto was ever purchased.
Fraud Details:
The site mimicked real-time price charts.
Victims transferred money via mobile banking expecting Bitcoin.
Wallets shown were fake – just numbers on a screen.
Applicable BNS Sections:
Section 468 – Forgery of website interface to deceive
Section 420 – Inducing delivery of money
Section 471 – Use of forged documents (e.g., fake receipts)
ICT Act, Section 66 – Unauthorized access & data manipulation
Legal Outcome:
CID Cybercrime Unit took down the website.
Mastermind traced through IP logs.
Ongoing trial under cybercrime court in Dhaka.
👤 Case 3: Identity Theft for Crypto Purchase – 2023
Background:
A hacker used personal information (NID, phone number, etc.) of several people to open Binance accounts and purchased cryptocurrencies using stolen mobile wallets.
Fraud Details:
KYC (Know Your Customer) info forged
Mobile banking OTPs intercepted via SIM swap
Crypto bought, then transferred abroad
Applicable BNS Sections:
Section 419 – Impersonation
Section 468 – Forgery of documents (NID, utility bills)
Section 471 – Using forged documents as genuine
ICT Act, Section 54 & 66 – Data theft and unauthorized access
Legal Outcome:
Arrest made after complainant traced transactions via blockchain explorer.
Court issued notice to mobile company for negligence in SIM swap.
🌐 Case 4: Telegram Crypto Signal Group Scam – 2024
Background:
A group claimed to offer “guaranteed profit” by following trading signals on Binance and Bybit. Members had to pay for VIP access (via Bkash/Nagad).
Fraud Details:
4,000+ members joined.
Group admins disappeared after collecting funds.
No real signals or trades.
Applicable BNS Sections:
Section 420 – Cheating by deception
Section 406 – Misappropriation of collected funds
Section 120B – Criminal conspiracy
Legal Outcome:
Victims lodged group complaint.
Cyber Police launched investigation under ICT and Penal Code.
Case transferred to Digital Security Tribunal.
🏦 Case 5: Banker Launders Crypto Using Shell Accounts – 2023 (Sylhet)
Background:
A private bank manager colluded with crypto traders to convert BDT to Tether (USDT) via unauthorized transactions using dummy accounts.
Fraud Details:
Fake accounts opened with forged documents
Money laundered through offshore wallets
Violated central bank guidelines
Applicable BNS Sections:
Section 409 – Criminal breach of trust by banker
Section 468/471 – Forgery of documents
Money Laundering Prevention Act – Non-BNS but crucial
Legal Outcome:
ACC (Anti-Corruption Commission) launched parallel probe.
Case filed under both Penal Code and Money Laundering Act.
🧾 Summary Table
| Case | Type of Fraud | Key BNS Sections | Outcome |
|---|---|---|---|
| Case 1 | Ponzi Scheme (MLM) | 406, 420, 409 | Arrests, funds missing |
| Case 2 | Fake Exchange | 420, 468, 471 | Site taken down, trial ongoing |
| Case 3 | Identity Theft | 419, 468, 471 | Arrest made |
| Case 4 | Signal Group Scam | 420, 406, 120B | Case in Digital Tribunal |
| Case 5 | Banker Laundering | 409, 468, Money Laundering Act | ACC involved |
📌 Final Notes:
Even though crypto is illegal as a financial medium in Bangladesh, the frauds involving crypto are still punishable under the BNS, especially under cheating, forgery, and criminal breach of trust.
Law enforcement in Bangladesh often uses a combination of Penal Code, ICT Act, and Money Laundering laws to investigate and prosecute these crimes.
Victims have limited recourse due to lack of regulation, but criminal laws still apply.
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