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The Andhra Pradesh Crime Investigation Department (CID) has uncovered an alleged ₹15 crore cryptocurrency investment fraud involving an international network operating across several countries.
Investigators traced the money through 13 digital wallets, two investment platforms and multiple overseas cryptocurrency transactions. Four suspects have been arrested, while four others are believed to be operating from abroad.
A court has also directed the return of identified cryptocurrency assets to the victim after their conversion into a US dollar-pegged stablecoin.
How Did the Cryptocurrency Fraud Begin?
The case involves a woman from Tenali who was allegedly persuaded to invest in cryptocurrency through promises of substantial financial returns.
According to investigators, the victim transferred approximately ₹15 crore after believing that the investment opportunities were genuine.
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A complaint was registered at the CID police station in Mangalagiri in October, prompting an investigation into the suspected investment network and its financial transactions.
How Were the Funds Transferred Abroad?
Investigators found that the victim initially transferred money from her bank accounts into 13 cryptocurrency wallets, including one linked to Robinhood and 12 on Onchain.
On the accused’s instructions, the cryptocurrency was subsequently transferred to two investment platforms identified as Honeycomapi.org and Alibarbit.bit.
Police traced 27 cryptocurrency transactions involving Bitcoin, Solana and Dogecoin, collectively valued at approximately $1.5 million.
The funds allegedly passed through several layers of transfers and mule accounts to conceal their origins before reaching overseas cryptocurrency exchanges.
How Did Investigators Trace the Cryptocurrency?
The investigation identified cryptocurrency transfers eventually reaching Gate Global Corporation, an exchange based in the Cayman Islands.
Using blockchain transaction analysis and international coordination, investigators traced 15 Bitcoin transactions to four accounts on the Gate.io exchange.
CID Director General Ravi Shankar Ayyanar said the investigation helped establish the movement of the suspected fraud proceeds and identify cryptocurrency assets connected to the accused. The identified assets were subsequently frozen through judicial proceedings.
Who Has Been Arrested?
The CID arrested four accused during its investigation, including two individuals from Hyderabad and two from Maharashtra.
Investigators believe four additional suspects are based overseas, including one in Malaysia, two in China and one in Portugal. Their suspected involvement highlights the international connections being examined in the case.
The investigation received technical assistance and coordination from the Indian Cyber Crime Coordination Centre under the Union Home Ministry.
What Did the Court Order?
Following the investigation, the CID filed a chargesheet before the Sixth Additional Junior Civil Judge-cum-Special Court for CID Cases in Guntur. On October 30, the court issued an order concerning the return of the identified cryptocurrency assets.
The direction requires the relevant cryptocurrency company to convert the assets into USDT, a stablecoin pegged to the US dollar, and transfer the amount to the victim.
What Does the Investigation Reveal?
The case demonstrates how cryptocurrency investment fraud can involve multiple digital wallets, international exchanges and layered transactions designed to complicate financial investigations. It also illustrates the importance of blockchain analysis, international cooperation and judicial intervention in tracing digital assets.
The reported court order represents a significant development in efforts to recover the victim’s funds, although the available information does not establish whether the money has already been returned.
