A 25-year-old man died by suicide in Tamil Nadu amid mounting pressure from people who invested in an alleged cryptocurrency and multi-level marketing scheme that police say may have caused losses of at least Rs. 25 crore.
The man, identified as A. Raja, reportedly encouraged several people to invest in the operation, which functioned under names including FQL Investment Trading, FQL Exchange App and VG Investment Group Syndicate.
“The man, we understand, was under pressure from investors whom he persuaded to invest,” a senior police officer said on Raja’s death.
Investors Promised Rapid Returns
According to police, local agents allegedly attracted investors by promising unusually high daily returns and claiming their money could double within 40 to 45 days through cryptocurrency trading.
The operation allegedly functioned for around seven months across Madurai, Dindigul, Virudhunagar and Sivagangai.
Police said money was collected through cash, GPay and UPI. Part of the funds was allegedly converted into Tether (USDT) and transferred to FQL- or VG-linked wallets.
Problems reportedly emerged when investors attempted to withdraw their funds. Police said withdrawals failed, balances became inaccessible, and some users were allegedly asked to make additional payments. The application later became unavailable.
Six Cases and 21 Arrests
Six cases have been registered so far, including three in Madurai and one each in Dindigul, Virudhunagar and Sivagangai. According to a senior police officer, 21 people have been arrested.
“The promoter is a person who returned from the US. We have arrested him and 20 others,” the officer said. Another senior police officer said, “Based on complaints received so far people have lost at least Rs 25 crore.”
Authorities stressed that the Rs. 25 crore figure is based on complaints received so far and is not a final assessment of total losses.
Investigation Transferred to EOW
Tamil Nadu Director General of Police Dr. Mahesh Kumar Aggarwal transferred all six cases to the Economic Offences Wing.
The transfer was made due to the number of victims, alleged financial losses, cryptocurrency transactions and suspected international links.
Police also froze 13 bank accounts connected to the accused. Investigators are examining transactions involving USDT and Binance wallets to trace funds and determine the full scale of the alleged scheme.
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