Case Study: The Jawed Habib & Son Cryptocurrency Fraud Case (2025)
In a world dominated by virtual fantasies and cyber riches, cryptocurrencies were the new fascination- a glittering vision of liberty, swiftness and prosperity. They turned programmers, traders and gamblers into millionaires. But in 2025, there was one tale from Uttar Pradesh that exposed the darker side of that virtual gold rush- when celebrity hairstylist Jawed Habib’s name suddenly landed in the middle of a multi-crore cryptocurrency scam. It was a headline nobody expected. Jawed Habib, India’s best-known style guru, the person behind hundreds of salons and thousands of makeovers, now accused of having a crypto scam connection? His name had previously equated to trust, beauty and success- so how did it find itself in the center of a money scandal? The origin of the scandal went back to 2023, when a firm known as Follicile Global Company (FLC) landed in the tiny town of Sambhal, Uttar Pradesh. As a global crypto investment platform, FLC offered investors astronomical returns- up to 50 to 75 percent annual- from investing in Bitcoin. Their presentation was advanced, their confidence persuasive and their deal? Unbeatable. For many small-town investors who hardly comprehended cryptocurrency but longed for instant riches, it seemed that the future had come knocking at their door. To seal their reputation, FLC hosted a sparkling promotional ceremony. And their biggest attraction that night was none other than Jawed Habib and his son, Anas Habib, who graced the occasion as chief guests. Photos and videos of the occasion spread like fire- Habib taking center stage, smiling for cameras, flanked by FLC’s promoters. To hundreds of bystanders, this was all the guarantee they required. If a national celebrity of Habib’s standing was in attendance, then clearly the company must be genuine. The illusion held up beautifully. Within months, over 150 investors from Sambhal and surrounding districts invested between ₹5 to ₹7 lakh each. The investment went beyond ₹5 crore and, as more victims emerged, later estimates put losses at up to ₹100 crore. For a short while, all seemed hunky-dory- even early investors were given small “profits,” further enticement to other wannabe investors. But by mid-2024, the show was over. Unlike what was expected by the investors, the office of the company was discovered locked, its website disabled and all numbers of contact? Unavailable. Investors attempting to withdraw their funds found they had been ensnared. When cases did come to the police, the truth was finally out. FLC was not registered under any Indian financial law. It had no traceable office, no valid license and no traceable management. What it did have was a long list of victims and the face of a celebrity which had unwittingly become its strongest marketing tool. The Sambhal Police then initiated a thorough probe and shortly registered several FIRs under Sections 420, 406 and 506 of the Indian Penal Code- charges of cheating, criminal breach of trust and intimidation. As the case picked up momentum, lookout notices were also issued against Jawed Habib, his son and others suspected to be part of the fraud to ensure they did not leave the country. Searches were also made on Habib’s Delhi and Mumbai properties but it was reported that he was not traced there. By October 2025, more than 23 FIRs had been lodged and the approximate value of the fraud was said to be in tens of crores. The case led to an ethical as well as legal floodgate of questions. Even if Habib wasn’t formally affiliated with FLC, was he morally culpable for unwittingly lending legitimacy to a scam? The case shed light on an existential dilemma of the new era- how celebrity endorsements, no matter for how short a time, can be used as weapons to prey on public trust. It also highlighted how ill-regulated India’s cryptocurrency market remains. With no clear oversight or single governing body, fraudulent schemes find easy ground to grow, targeting people who neither understand digital finance nor know where to verify authenticity. The case of Jawed Habib also brought out the potency of fame psychology. Most investors acknowledged that they never looked into FLC’s documents, registration information or business model- they just believed in the well-known face they saw in commercials. It was a severe reminder that fame, when misplaced, can become an instrument in the hands of manipulators. As the probe is on, the case continues to be one of the most discussed instances of how India’s growing digital economy still has no buffer to defend its citizens. The Uttar Pradesh Police are following money trails, freezing accounts and tracking down the masterminds behind the syndicate. Reports indicate that if adequate evidence points to organized financial crime, tougher laws- including asset seizures- might come into force. But outside the courtroom, the broader lessons of this case are already clear. It cautions investors to always check before investing, to keep in mind that high returns nearly always mean high risk and to never mistake celebrity endorsement for credibility. It also calls on the government to make its digital financial regulations tighter and to inform citizens of the perils of online investment scams. The Jawed Habib cryptocurrency scam is no longer a case- it’s a cautionary tale for a whole generation of people impressed by digital cash and celebrity power. It illustrates how easily trust can be bought and how rapidly it can be broken. Whether or not, Habib gets convicted, the case has already altered the discourse on accountability, celebrity and finance in India. Ultimately, this scandal is not merely one of crores lost- it’s about misplaced trust. And as India marches onward into the digital age, the tale stands as a reminder that modernization unregulated can turn an opportunity for financial freedom, an opportunity for exploitation and glamour turn into grief.
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Blockchain, CRYPTO, Cyber security, Digital Assets
