Tamil Nadu Police Transfers 6 Crypto Fraud Cases To Economic Offences Wing

The Tamil Nadu Police have transferred all six cases linked to an alleged FQL multi-level marketing-cum-cryptocurrency trading scam to the Economic Offences Wing, following a large number of complaints from alleged victims in Madurai and cases being registered across four southern districts.

The cases involve FQL Investment Trading, FQL Exchange App and VG Investment Group Syndicate. Police said the alleged scheme had been operating for the past seven months, with local agents allegedly luring people with promises of abnormally high daily returns and claiming that investments could be doubled within 40 - 45 days through cryptocurrency trading.

According to the preliminary investigation, investors were allegedly asked to make payments in cash or through G-Pay and UPI. A portion of the funds was allegedly converted into Tether (USDT) and credited to FQL and VG wallets.

The police statement does not disclose the quantum of money allegedly cheated, referring only to the reported financial loss.

The alleged fraud came to light when investors were unable to withdraw their money. Withdrawals reportedly failed, balances became inaccessible and additional payments were allegedly demanded. The application was subsequently shut down, leaving investors unable to access their purported balances.

Six cases have so far been registered - three in Madurai and one each in Dindigul, Virudhunagar and Sivagangai. Seventeen accused have been arrested and remanded in judicial custody, while 13 bank accounts linked to the accused have been frozen.

The transfer follows large-scale complaints in Madurai, where alleged victims from areas including Melur, Alanganallur, and neighbouring districts have approached the authorities. They allege that they were initially shown high returns on their investments but later found themselves unable to withdraw their money.

Large numbers of alleged victims have also approached the Madurai District Collectorate, where special officials are receiving petitions and collecting details of investments and losses. The victims have sought recovery of their money and a comprehensive probe into FQL and those allegedly associated with it.

Director General of Police Dr Mahesh Kumar Aggarwal ordered the transfer citing the large number of victims, the inter-district nature of the alleged fraud, cryptocurrency transactions involving USDT and Binance wallets, and suspected international linkages.