Altcoins News

Story: China and India Crack Down on USDT Scams as Tether Trading Volume Drops

By Sakamoto Nashi

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Chinese and Indian authorities have taken major steps to stop rising crypto scams involving Tether’s USDT, a stablecoin tied to the U.S. dollar.

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In late July 2025, police in China’s Hunan province broke up a scam operation involving three suspects. The group used romance scams to connect with victims overseas.

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Meanwhile, in India, five people were arrested for running a similar fraud using Telegram-based platforms. Among them was a 29-year-old woman known as the “Crypto Queen.

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In a separate incident in Delhi, a 56-year-old doctor lost over $115,000 after being targeted in a romance scam.

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These events highlight a serious issue: both India and China have gaps in how they regulate cryptocurrencies.

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The Indian government has tried to tackle the issue by introducing a 30% tax and 1% TDS (tax deducted at source) on crypto trades under Section 115BBH.

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On the Chinese side, enforcement varies by region, and there’s no unified crypto policy. The recent bust in Hunan shows that local police can act quickly, but without a broader…

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Experts say stablecoins like USDT are popular among criminals because they keep a stable price and can move quickly between accounts. Even after these arrests, USDT stayed at $1.

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The Coincu research team pointed out that the recent actions are helpful but won’t solve everything.

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Globally, similar problems are growing. In South Korea, over 15,000 people were victims of a $225 million crypto scam involving fake investments.

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As these scams increase, so does the pressure on governments to create better rules. Right now, many scammers use platforms like Telegram, fake websites, and even real-looking…

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What’s also worrying is how these fraudsters mix social tricks—like fake relationships—with technical tools, like mobile apps and unregulated exchanges.

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The recent arrests in both China and India are steps in the right direction. But experts believe more needs to be done.

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Public awareness is also key. People need to be educated about the risks of investing in crypto through unknown sources or making payments based on online promises.

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In conclusion, while the crackdown on USDT scams in China and India is a good sign, it also reveals just how widespread and complex these scams have become.

The Currency Analytics

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