Chennai: Police have registered a case against a private firm executive for allegedly cheating a man of ₹10.89 lakh in a cryptocurrency-based investment fraud scheme that promised unusually high monthly returns. The accused, identified as Vignesh from Guduvanchery, is also suspected of duping several other individuals using a similar method of false investment assurances and fabricated profit claims.
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High Monthly Returns Used as Bait
According to police sources, the complainant, R. Sasikumar, 41, a resident of Mannappa Street in Kottur, alleged that he was lured into investing in cryptocurrency after being introduced to Vignesh through professional connections. Sasikumar, who works as a manager in a Chennai-based real estate firm, had earlier worked at a matrimonial website in Adyar, where he first met the accused, who was employed there as a public relations manager.
The complaint states that Vignesh approached Sasikumar with an investment proposal, claiming that investing ₹1 lakh in cryptocurrency would generate monthly returns of around ₹20,000. To build credibility, he allegedly showed fabricated proof of his own investments and claimed he had already earned substantial profits through similar transactions.
Trusting these representations, Sasikumar began investing in multiple instalments over a period of time, eventually transferring a total of ₹10.89 lakh. However, despite repeated assurances, no returns were paid. When Sasikumar began questioning the delay and requested repayment, he reportedly discovered inconsistencies in Vignesh’s statements.
Multiple Similar Complaints Under Verification
Further inquiry by the complainant allegedly revealed that the accused had used the same investment pitch to cheat multiple other individuals, with total losses in related complaints estimated at around ₹40 lakh. When confronted, Vignesh allegedly refused to return the money and is also said to have issued threats, escalating the matter into a criminal intimidation angle.
Following the complaint, police have booked Vignesh under relevant sections relating to cheating, criminal breach of trust, and criminal intimidation. Officials said preliminary investigation indicates a pattern of repeated financial deception using cryptocurrency investment promises as the primary lure.
Investigators believe the case reflects a growing trend of crypto-linked frauds where individuals exploit the lack of awareness about digital assets to promise unrealistic returns. These schemes often rely on personal trust networks, workplace connections, or social introductions to gain credibility before collecting funds in multiple instalments.
Fund Trail and Digital Records Being Examined
Cybercrime experts note that such frauds typically involve minimal actual investment activity and instead function as rotating financial traps, where early victims are sometimes shown fake returns to encourage larger deposits. Once significant sums are collected, the accused either delay payments indefinitely or cut off contact altogether.
In this case, police are also examining whether the accused operated independently or was part of a wider network engaged in similar fraudulent schemes across Chennai and nearby districts. Financial transaction records and digital communication logs are currently under scrutiny to trace the flow of funds and identify potential accomplices.
Authorities have also warned that cryptocurrency-related investment scams are increasingly being reported in urban centres, where victims are often educated professionals attracted by high-return promises. Officials stressed that genuine investment platforms do not guarantee fixed monthly profits and urged the public to verify credentials before transferring money.
The complainant has stated that he initially trusted the accused due to their previous professional association, which played a key role in building confidence. However, the lack of written agreements and formal investment documentation later made recovery of funds difficult.
