A suspected cryptocurrency investment fraud spanning four Tamil Nadu districts is under investigation after police found that the alleged operation used an agent network extending through at least 20 levels.
The case involves FQL Investment Trading, FQL Exchange App and VG Investment Group Syndicate. Police allege investors were promised unusually high daily returns, including claims that their money could double within 40 to 45 days.
EOW Takes Over Six Cases
According to an Economic Offences Wing official in Madurai, six cases have been registered across Madurai, Dindigul, Sivaganga and Virudhunagar after being transferred from the district police.
The alleged scheme operated for around seven months. Preliminary complaints place investor losses at at least Rs. 25 crore, although officials said the figure could rise as more victims come forward.
Police have also frozen 13 bank accounts linked to suspects and are examining cryptocurrency wallets and bank transfers. A senior police official told TNIE that investigators were still uncertain whether Ranjith from Melur was the main operator.
“They (fraudsters) invested the cheated money as their own in cryptocurrency and gained profits. So, action is being taken on their trading accounts,” he said.
Funds Were Allegedly Converted Into USDT
According to the preliminary investigation, local agents collected money through cash, G-Pay and UPI. Some funds were allegedly converted into Tether’s USDT before being transferred to wallets linked to FQL or VG.
Problems emerged when investors attempted withdrawals. Complaints allege that balances became inaccessible, withdrawals failed and some investors were asked to make additional payments before the application stopped operating.
Arrest Figures Remain Unclear
Reports differ over the number of arrests. NDTV cited a senior police officer saying 21 people had been arrested, while an official police communication reported by PTI said 17 accused had been arrested and remanded to judicial custody.
Police have issued lookout notices and plan to identify properties linked to suspects. Authorities have also urged affected investors to file complaints through local police stations, helpline 1930 or India’s cybercrime portal.
Police advised people to avoid believing “any apps that are not officially available on the Play Store or App Store.”
The investigation remains ongoing as authorities examine suspected overseas links, cryptocurrency transactions and the structure of the multi-level agent network.
Also Read: FQL Crypto Scam: 25,000 Complaints Expose Suspected Agent Network
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