Andhra Pradesh’s Crime Investigation Department has traced cryptocurrency linked to an alleged international investment scam worth approximately USD 1.5 million, or Rs. 15 crore. A Guntur court has ordered frozen digital assets returned to a woman from Tenali following an international investigation.
Fraud Involved 13 Wallets and 27 Transactions
Investigators informed that the victim was persuaded to invest after receiving promises of unusually high cryptocurrency returns. She transferred money from bank accounts into 13 non-custodial wallets, including one linked to Robinhood.
Following instructions from suspected fraudsters, she moved cryptocurrency to two purported investment websites, Honeycomapi.org and Alibarbit.bit. Police traced 27 transactions involving Bitcoin, Solana and Dogecoin, collectively valued at approximately USD 1.5 million. The proceeds allegedly passed through intermediary accounts.
International Links and Suspects Identified
Blockchain analysis eventually connected 15 Bitcoin transactions to four accounts at Cayman Islands-based exchange Gate Global Corporation.
Investigators identified suspected connections across Telangana, Maharashtra, Malaysia, China and Portugal. Four people were arrested in India, including two in Hyderabad and two in Maharashtra. Four additional suspects were reported overseas, with their arrest status unconfirmed.
“Through detailed blockchain transaction analysis, technical expertise and international coordination, the CID successfully traced the movement of the defrauded cryptocurrency and identified the assets linked to the accused,” CID DGP Ravi Shankar Ayyanar said.
Court Directs Conversion Into USDT
CID investigators worked with the Indian Cyber Crime Coordination Centre to follow the blockchain trail. After a chargesheet was filed, the Special Court for CID Cases in Guntur issued a Return of Property Order on October 30, 2026.
The order directed Gate Global Corporation to convert cryptocurrency frozen in four linked accounts into USDT, a dollar-pegged stablecoin, and transfer the proceeds to the victim. The reports do not confirm completed repayment.
The case shows how blockchain tracing and cross-border cooperation can support recovery efforts even when suspected fraudsters use numerous wallets and international intermediaries. It also highlights the importance of independently verifying investment platforms and treating promises of unusually high returns with caution.
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