Hyderabad: Two interstate accused were arrested in connection with cases registered in the Adilabad district of Telangana over cryptocurrency investment fraud, the police said on Sunday, October 11.
The two key accused from Andhra Pradesh allegedly cheated around 500 victims through a Ponzi scheme and multi-level marketing by running a fake website in the name of a cryptocurrency platform, promising to double investments within two years.
“The investigation indicates that hundreds of people across Telangana, Andhra Pradesh, and other areas may have been cheated, with the total amount involved suspected to exceed Rs 10 crore,” Adilabad District Superintendent of Police Akhil Mahajan said in a release.
The investigation further revealed that after collecting money from investors, the accused allegedly shut down the website and failed to repay the investments.
Three victims from whom approximately Rs 21 lakh was collected lodged complaints with the Adilabad One Town Police, after which cases were registered against six persons. Of them, two key accused were arrested.
As part of the investigation, the police seized properties linked to the accused in connection with Zaheerabad and Rajahmundry, along with mobile phones.
On the modus operandi, the police said during the investigation, it was found that the accused allegedly operated an investment scheme in the name of a cryptocurrency platform through a website.
The accused introduced investment packages ranging from Rs 1,000 to Rs three lakh and promised that the invested amount would double within two years.
Participants were offered commissions of up to 25 per cent for introducing new members and encouraging them to invest, the SP said.
The scheme allegedly encouraged investors to recruit more people, resulting in money being collected from additional members.
To gain public confidence, the accused reportedly conducted meetings in different locations and explained the scheme through online meetings and video conferences, the police said.
Interested investors were asked to register on the website and transfer money through online exchanges or digital payment platforms.
After receiving the money, the accused allegedly displayed cryptocurrency credits in the investors’ accounts.
Police are examining the seized items and financial transactions to establish the roles of the remaining accused, identify additional victims, and determine the total amount allegedly collected through the scheme.
Further investigation is underway, the release added.
Follow on Twitter | Edited by Saleha Fatima | 
