Man, 25, Dies By Suicide Amid Pressure From Investors After Crypto Scam

The alleged FQL multi-level marketing-cum-cryptocurrency trading scam in Tamil Nadu has taken a tragic turn with the death of a 25-year-old. A Raja was reportedly facing pressure from people he had advised to invest money in the scheme.

"The man, we understand, was under pressure from investors whom he persuaded to invest," a senior police officer said on Raja's death.

The cases involve FQL Investment Trading, FQL Exchange App and VG Investment Group Syndicate. Police said under the alleged scheme, local agents allegedly lured people with promises of abnormally high daily returns and claimed that investments could be doubled within 40 - 45 days through cryptocurrency trading.

The alleged fraud came to light when investors were unable to withdraw their money.

Raja had reportedly encouraged several people to invest in the multi-level marketing-cum-cryptocurrency trading operation. After investors were unable to withdraw their money, they allegedly pressured him to return their investments.

Succumbing to the pressure, Raja died by suicide in Dindigul district.

Families who had lost money in the alleged scam gathered at Raja's house, hoping that he might have kept the money they had invested with him.

On Monday, Tamil Nadu Director General of Police Dr Mahesh Kumar Aggarwal transferred all six cases related to the alleged FQL scam to the Economic Offences Wing (EOW), citing the large number of victims, the extent of the network, reported financial loss, cryptocurrency transactions and suspected international linkages.

Promise Of Doubling Money

The alleged operation, functioning under the names FQL Investment Trading, FQL Exchange App and VG Investment Group Syndicate, is said by police to have been operating for the past seven months across Madurai, Dindigul, Virudhunagar and Sivagangai.

Local agents allegedly lured people with promises of abnormally high daily rewards and claimed that their investments could be doubled within 40 to 45 days through cryptocurrency trading.

Police say investments were collected through cash, G-Pay and UPI, with part of the funds allegedly converted into Tether (USDT) and credited to FQL/VG wallets.

Investors subsequently reportedly found themselves unable to withdraw their money. According to police, withdrawals failed, balances became inaccessible and additional payments were demanded. The application was later shut down, leaving investors unable to access their purported balances.

Large Number Of Complaints In Madurai

The alleged scam has triggered a large number of complaints in Madurai, with victims from areas including Melur and Alanganallur approaching the authorities.

At the Madurai District Collectorate, special officials have been receiving complaints and recording details of victims and their investments. The complainants have sought recovery of their money and a comprehensive investigation into FQL and those allegedly behind the operation.

6 Cases, 21 Arrests, Rs 25 Crore Loss

Six cases have so far been registered - three in Madurai and one each in Dindigul, Virudhunagar and Sivagangai.

Twenty-one accused have now been arrested, according to a senior police officer. "The promoter is a person who returned from the US. We have arrested him and 20 others," police officer told NDTV.

The Director General of Police's statement did not disclose the quantum of money allegedly lost. However, another senior police officer told NDTV, "Based on complaints received so far people have lost at least Rs 25 crore."

The figure is based on complaints received so far and is not an official final assessment of the alleged fraud.

The police have also frozen 13 bank accounts linked to the accused as part of the investigation.

The DGP cited cryptocurrency transactions involving USDT and Binance wallets, besides suspected international linkages, as among the reasons for handing over the investigation to the EOW.

The case is the first major economic scam to be reported under the three-month-old ruling TVK government. At the same time, police say the alleged operation had been running for seven months.