Tamil Nadu Police have transferred six cases linked to the alleged Rs. 400 crore FQL crypto fraud to the Economic Offences Wing as complaints reportedly reached 40,000. Investigators are tracing USDT transactions, Binance-linked wallets, bank accounts and possible international connections.
Tamil Nadu Police have transferred six cases linked to an alleged Rs. 400 crore FQL multi-level marketing and cryptocurrency trading fraud to the Economic Offences Wing. The move came as complaints from investors reportedly rose to about 40,000 across four districts.
The cases involve FQL Investment Trading, FQL Exchange App and VG Investment Group Syndicate. Police said the alleged network operated for about seven months in Madurai, Virudhunagar, Dindigul and Sivaganga.
FQL Crypto Fraud Cases Shifted to Economic Offences Wing
Director General of Police Mahesh Kumar Aggarwal ordered the transfer after authorities reviewed the scale of the alleged operation. Police cited the number of complainants, activity across several districts and the movement of funds through cryptocurrency wallets.
Investigators are also examining suspected overseas links. According to police, some transactions involved Tether, or USDT, along with wallets linked to Binance. The EOW is expected to trace how money moved through bank accounts, UPI transfers and digital wallets.
So far, police have registered six cases. Three were filed in Madurai, while Dindigul, Virudhunagar and Sivaganga recorded one case each. Authorities have arrested 17 people and frozen 13 bank accounts linked to the accused.
Investors Allegedly Promised High Crypto Returns
Police said local agents allegedly persuaded people to invest using cash, G-Pay and UPI. A portion of the collected money was then allegedly converted into USDT and transferred to wallets connected with FQL and VG.
According to complaints, investors were told that cryptocurrency trading could generate unusually high daily returns. Some were allegedly promised that their money could ‘double within 40 to 45 days.’ Investigators have not said whether any real trading activity supported those claims.
Several complainants said their account balances initially appeared to rise. However, problems reportedly started when investors attempted to withdraw their funds.
Withdrawals Failed Before FQL App Shut Down
Investors reportedly faced failed withdrawals and later lost access to balances displayed on the platform. Some were also allegedly asked to make additional payments before they could recover their money.
The FQL-linked application was later shut down. As a result, many users could no longer access their accounts or the funds shown on the platform. The shutdown prompted more investors to approach police stations and local authorities.
Officials at the Madurai District Collectorate have also started collecting petitions from affected investors. Complainants from Melur, Alanganallur and nearby areas have provided details about their investments and claimed losses.
EOW to Trace USDT, Binance Wallet Transactions
The Economic Offences Wing will now examine the wider financial network behind the alleged FQL crypto scam. The investigation is expected to focus on bank transfers, UPI payments, USDT transactions and cryptocurrency wallets.
Authorities will also try to identify the final recipients of the money and determine whether more people or companies took part in the alleged operation. Police are examining suspected international connections as part of the probe.
Meanwhile, CPI(ML) Madurai district secretary K Meiyyar has called for a Special Investigation Team instead of an EOW-led inquiry. Authorities have not announced any change to the investigation structure.
Police have advised affected investors to file complaints at their local police stations. Complaints can also be submitted through the national cybercrime helpline 1930 and the official cybercrime reporting portal.
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