Well firstly, I would suggest removing the personal data of the scammer from the OP, this is not an "Investigations" section/ Doxing is not allowed here.
Thanks for this suggestion but how do you think other people will stay away from these kind of scammers if personal data is not posted??
Yes legal action taken but it will not help and there will be a hold in money forever I guess. Also, UPI is normal banking payment system not linked with Binance.
Today, 70 Lakh Mobile Numbers have got blocked due to these scams.
70 Lkah mobile numbers was blocked due to they were issued for same Aadhaar number and the cap limit for one aadhaar is to buy 10 mobile numbers.
Now, let's talk about how can you avoid these kind of scams.
1. First you need to choose the right trading partner, someone with highest ratings, trading volume, positive feedback not based on the price offered.
2. I don't think accepting payments via UPI is not a problem when the trading partner is trusted.
3. Now you lost 7K which may not be possible to recover but you can stop the user from doing such practices in future ith anyone by reporting it to the customer support and I dealt similar kind of scammers on Paxful and LBC and managed to lock their accounts with all their balance forever and they will run back to you and pay and beg to revoke the support ticket.