Madurai: Three more people were arrested on Saturday in connection with the multi-crore FQL cryptocurrency Ponzi scam in Dindigul, Tamil Nadu.
The arrests came as the number of complaints received by police since Friday approached 25,000. Police said the number of complaints increased severalfold on Saturday as more investors came forward with details of their losses.
Madurai rural police organised three special camps to handle the large number of complaints. A significant number of victims submitted petitions and supporting documents at the camps. According to police, the complaints will first be sent to the district headquarters. Once the case is transferred to the special unit, the petitions will be forwarded to the Economic Offences Wing (EOW) in Madurai for further investigation.
The Dindigul District Crime Branch has registered a case against 10 suspects. Those arrested on Saturday have been identified as Ramesh, his wife Anitha and Vijay. Investigators are examining the complaints submitted by investors to establish the alleged network of agents, identify the flow of funds and determine the roles played by those involved in the scheme.
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R Sakthivel, an investor from Melur, said he initially invested around ₹50,000 and received returns during the early stages. He said agents subsequently persuaded him to invest more in V G Investment by promising higher returns. Acting on their assurances, he invested around ₹1 lakh more, but later lost the money.
Sakthivel also alleged that Ranjith, whom he described as the alleged mastermind of the operation, had been questioned by police but was not arrested. Police, however, said that based on the information currently available, Ranjith is being treated as an agent and not as the mastermind of the scam. Police also said he had filed a petition seeking protection from harassment.
Meanwhile, Ranjith and his wife have released separate videos on social media claiming that they are innocent. They denied the allegations against them and alleged that they had received threats to their lives. Police are examining these claims along with statements and evidence being submitted by investors.
According to police, investors in the FQL scheme received their invested money and returns for a certain period. This helped build confidence among investors and encouraged further investments. Investigators believe that the situation changed after investors were persuaded to move their money into V G Investment.
Police suspect that the funds collected through V G Investment were subsequently siphoned off by the alleged fraudsters. Investigators are also examining the possibility that V G Investment was launched after the operators realised that the FQL scheme could soon come under scrutiny. The new investment platform may have been used to collect additional money from existing investors and move funds through a separate financial network.
With nearly 25,000 complaints now reaching the police, investigators face the task of identifying the total amount involved, tracing the movement of investors’ money and establishing the roles of agents and other members of the alleged network. The large number of complaints is also expected to provide investigators with additional information about how the scheme operated and how investors were persuaded to put in more money.
Victims can file complaints at their local police station or cybercrime police station. Complaints regarding cyber fraud can also be reported through the 1930 helpline and the National Cyber Crime Reporting Portal.
