Zerodha CEO Nithin Kamath Warned of a Scam: Here's What Happened

Zerodha CEO Nithin Kamath recently took to Twitter to warn people about a scam that someone he knew fell victim to. In the tweet, Kamath shared the details of the fraud and how it played out, serving as a cautionary tale for others who might be approached with similar offers.

Someone I know got scammed & lost money.

It started with a response to a part-time job offer on WhatsApp. The first few tasks were about leaving fake reviews for resorts & restaurants in random places like Peru. ~Rs 30k was transferred to the bank for the tasks completed. 1/8

— Nithin Kamath (@Nithin0dha) May 3, 2023

The Scam

The scam began with a response to a part-time job offer on WhatsApp. The first few tasks involved leaving fake reviews for resorts and restaurants in random places like Peru. The victim was paid around Rs 30,000 for the tasks completed.

A Telegram group was created with others who claimed to do similar tasks. The next task for the group was to trade on a mock crypto platform, following many rules. Profits generated were allowed to be withdrawn, even without transferring any real money.

The Trap

The victims were then asked to transfer real money to generate higher returns. Others in the group, claiming to have made large transfers and profits, nudged the victim to do the same. Despite the risk involved, the victim was tempted by the prospect of earning more money.

The victim tried to withdraw the money but couldn't and was told that a certain number of traders were required. The fear of being unable to withdraw the money took over, and more money was added to the trade. It resulted in a total loss of Rs 5 lakhs, a significant amount for anyone.

The Aftermath

The victim finally decided to confide in their spouse about the situation, who immediately realised it was a scam. They reached out to the police for help.

The account seemed like a real crypto account, with an account balance, ledger, P&L, etc. But it was all fake. Everything on it was manipulated, including the Telegram group.

The Warning

The police shared many cases of even well-educated folks borrowing tens of lakhs and losing it in such sophisticated scams. Everyone is a target, and we need to create awareness. The critical thing to remember is that there is no easy way to quickly make a lot of money.

The case serves as a warning to those tempted to take up similar job offers or invest in dubious schemes. As Nithin Kamath tweeted, "Please don't fall for such scams." It's important to exercise caution and be wary of anyone who promises easy money.