Cryptocurrency Issues
Crypto fraud, exchange disputes, frozen crypto accounts and the tax treatment of virtual digital assets, with complaints and recovery steps.
- Estimate Cost
- ₹10,000 – ₹1,00,000
- Typical duration
- 15 days
Service overview
- Crypto assets (called Virtual Digital Assets, or VDAs, in Indian law) are legal to own and trade in India, but they are not legal tender and there is no single crypto law.
- The framework is a patchwork: a flat 30% tax on gains, 1% TDS on transfers, anti-money-laundering rules that apply to exchanges and service providers, and the general criminal law on cheating.
Who needs it? / When is it needed?
- You lost crypto or money in a scam, fake exchange, rug pull or "crypto investment" scheme.
- Your bank account was frozen because of a P2P crypto transaction.
- An exchange has frozen your wallet, delayed withdrawal or become unresponsive.
- You received an income-tax notice about VDA gains, TDS or unreported crypto.
- Your business accepts or deals in crypto and needs a compliance check. Early action matters: blockchain trails and exchange records are easier to preserve and trace when the matter is fresh.
What to expect from the WCP Professionals
- Classify the problem. Scam, exchange dispute, bank freeze, tax notice or compliance question - each has a different law, a different authority and a different clock.
- Preserve the trail. WCP professionals guide you to capture wallet addresses, transaction hashes, exchange account statements, chats and app screenshots before they vanish, and prepare a neat transaction chronology that a police officer or court can follow.
- Report in the right order. For fraud, call 1930 and file on the cybercrime portal at once, then an FIR; WCP professionals also write to the exchange's compliance team asking it to freeze or flag the receiving wallets and to preserve KYC and logs for the investigating agency.
- Bank freezes from P2P trades. WCP professionals separate your clean funds from the disputed credit, explain the source, and seek release of the undisputed balance (see Bank Account Freeze).
- Tax notices. WCP professionals reconcile your trades against the 30% tax on VDA gains, the 1% TDS and the rule that losses cannot be set off, and reply to the notice with accurate workings rather than estimates.
- Pursue recovery realistically. WCP professionals tell you openly what is possible: tracing to Indian exchanges where KYC exists, civil injunction or recovery suit, and cooperation with agencies - and what is unlikely, such as recovery from anonymous wallets or offshore platforms.
- Compliance for businesses: FIU-IND and PMLA obligations, KYC, and reporting standards that tightened from April 2026.
Key deliverables
- Case assessment and a recovery-or-defence strategy note
- Evidence file and transaction chronology
- Cyber complaint, FIR drafting and exchange / bank letters
- Reply to income-tax or other regulatory notice
- Civil injunction or recovery action, where viable
- Compliance review for crypto businesses
Standard turnaround time
- Case assessment: 2 to 3 working days.
- Complaints and letters: 3 to 5 working days.
- Replies to tax notices: within the notice's due date, typically 7 to 30 days.
Government fees, timelines & key outcomes
- Reporting to 1930 / the portal is free; court fees and advocate expenses apply for civil action.
- Indicative tax position: 30% on VDA gains (only cost of acquisition deductible), 1% TDS above specified transfer limits, no set-off of crypto losses, and gifts above Rs. 50,000 taxable in the recipient's hands.
- Key outcome: a lodged complaint and FIR, bank or exchange freezes lifted or placed, a defensible tax reply, or a recovery order. Recovery of lost crypto is uncertain.
Forms & filings involved
- Complaint on 1930 and the National Cyber Crime Reporting Portal; FIR
- Letters to exchanges and banks, including preservation requests
- Reply to income-tax notice; correction of VDA reporting and TDS
- Civil suit and application for injunction, where appropriate
- FIU-IND registration and reporting, for service providers
Documents required
- Wallet addresses, transaction hashes (TxIDs) and exchange account statements
- KYC and bank statements showing buy / sell
- P2P transfers
- Screenshots of chats, ads, websites and apps involved
- Counterparty details: phone, UPI ID, bank account, Telegram handle
- Income-tax notice and ITR
- TDS records
- Agreements or invoices, for business disputes
What we need from you
- Do not delete chats, apps or wallet history.
- Do not send more money to anyone promising "recovery".
- Share complete trade history, including losses and P2P trades.
Important conditions
- Recovery of crypto is difficult, particularly from anonymous wallets or offshore platforms.
- Tax rules in this area change often; WCP professionals advise on the law as of filing.
Additional information
- Crypto is legal to trade but not legal tender, following the Supreme Court's 2020 decision against the RBI's 2018 banking ban.
- Since March 2023, VDA service providers fall under the Prevention of Money Laundering Act and must register with FIU-IND.
The estimated cost covers indicative professional fees only. Government fees, stamp duty and taxes are payable at actuals.
How it works
- 1. Raise a service enquiry describing your requirement.
- 2. A Relationship Manager reviews it and opens it for bidding.
- 3. Pay into escrow and assign the professional you select.
- 4. Track progress to completion, then accept and release payment.
Frequently asked questions
Is cryptocurrency legal in India?
Holding and trading crypto is not banned, but there is no specific regulatory framework; exchanges must register with FIU-IND under anti-money-laundering rules.
How is crypto taxed?
Gains from virtual digital assets are taxed at 30% with no deduction except cost, losses cannot be set off, and 1% TDS applies on transfers above the threshold.
What can I do after a crypto scam?
Report on 1930 or cybercrime.gov.in, file a police complaint, and notify the exchanges involved so they can freeze traceable assets.
Can a crypto exchange freeze my account?
Yes — on KYC grounds or on law-enforcement requests; you can ask for the reason and respond with proof of source.