HC junks pre-arrest bail in cryptocurrency case

New Delhi: Delhi High Court has refused to grant anticipatory bail to a man in a cyber fraud case involving the transfer of around Rs 1 crore in cryptocurrency.Justice Swarana Kanta Sharma observed that the case prima facie pertained to an "organised cyber fraud" related to digital currency, and the custodial interrogation of the accused was necessary.According to the complaint, Gaurav met the complainant through a common friend in 2024 and subsequently requested him to provide digital currency worth Rs 1 crore. It is alleged that the complainant initially declined the request, but after the accused repeatedly promised lucrative investment opportunities, the complainant transferred USDT (cryptocurrency stablecoin) 1,11,247.The court was informed that the cryptocurrency transfer was done from the complainant's "wallet" to a "wallet" controlled and operated by the accused, and after retaining a portion, the accused allegedly transferred approximately USDT 104,526 to his associates, including a co-accused.The FIR was registered by

Delhi Police

in 2025 for the offences of cheating, criminal breach of trust and conspiracy.The accused claimed that he was falsely implicated, stating he merely acted as an intermediary. The court stated that joining the investigation did not by itself entitle the accused to the relief of anticipatory bail, and in the absence of his custodial interrogation, police would not be able to access the "wallets" or trace the complete proceeds of crime."His custodial interrogation is stated to be necessary for unearthing the larger conspiracy," it stated.