Tamil Nadu police investigate alleged crypto investment fraud after overseas Indian reports substantial financial loss
An overseas Indian was allegedly cheated of ₹27.45 lakh in a fraudulent cryptocurrency trading scheme, leading to the arrest of five suspects by police in Tamil Nadu, officials said.
According to investigators, the victim, a Non-Resident Indian (NRI), was persuaded to invest in what was presented as a profitable cryptocurrency trading opportunity. The accused allegedly assured the investor of high returns and convinced him to transfer funds over a period of time. However, after receiving the money, the suspects reportedly failed to deliver the promised cryptocurrency or returns, prompting the victim to approach the police.
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Following a detailed investigation, law enforcement authorities traced the financial transactions and identified those allegedly involved in the fraud
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Five individuals have since been arrested, while investigators continue to examine the money trail, including digital payment records and communication between the accused and the complainant
Police said efforts are under way to determine whether the suspects targeted other victims through similar investment schemes. Electronic devices and financial records seized during the investigation are being analysed to establish the full extent of the alleged fraud.
The case highlights the growing risk of cryptocurrency-related investment scams, in which fraudsters exploit the popularity of digital assets by promising unrealistic profits. Cybercrime experts have repeatedly advised investors to verify the authenticity of trading platforms, avoid transferring money to unverified individuals and report suspicious investment offers immediately.
The accused have been booked under relevant provisions of the Bharatiya Nyaya Sanhita and the Information Technology Act. Further investigation is continuing, and police have not ruled out additional arrests as they seek to recover the allegedly defrauded amount.
