Adilabad Police have arrested two men from Andhra Pradesh in connection with an alleged cryptocurrency Ponzi scheme that may have cheated around 500 investors of more than ₹10 crore.
The arrested accused have been identified as Polamarasetti Ratna Raju of Visakhapatnam and Dondapati Lakshmana Rao of West Godavari district.
Police say the duo operated a scheme in the name of ITC Global and allegedly used a fake cryptocurrency website to attract investors from Telangana, Andhra Pradesh and other regions.
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Investors Were Promised Double Returns in Two Years
According to Adilabad Superintendent of Police Akhil Mahajan, the accused offered investment packages ranging from ₹1,000 to ₹3 lakh.
Investors were allegedly promised that their money would double within two years.
The scheme also offered commissions of up to 25% to participants who introduced new members and encouraged them to invest.
Police say this recruitment model helped the network expand by continuously bringing in fresh investors.
The structure is consistent with a multi-level marketing arrangement in which participants are rewarded for adding more people to the system.
Three Complaints Triggered the Investigation
The case began after three victims approached Adilabad One Town Police Station and alleged that they had collectively lost around ₹21 lakh.
Police registered cases against six people.
Two of them have now been arrested, while investigators are continuing efforts to trace the remaining accused.
The three complaints form the immediate basis of the criminal investigation.
However, police say the wider network may have affected hundreds of people.
Fake Website Displayed Cryptocurrency Credits
Investigators say the accused operated a website that presented itself as a cryptocurrency investment platform.
Interested participants were told to register and transfer money through online exchanges or digital-payment channels.
Once payments were received, the platform allegedly displayed cryptocurrency credits in investor accounts.
This created the impression that the money had been invested and was continuing to grow.
Police say the displayed balances helped build confidence among participants and encouraged them to invest larger amounts.
Meetings and Video Calls Used to Build Trust
The accused allegedly promoted the scheme through physical meetings at different locations as well as online meetings and video conferences.
Police say the network targeted people in Adilabad, Warangal, Karimnagar, Nizamabad and several areas of Andhra Pradesh.
The meetings were allegedly used to explain investment plans, expected returns and referral commissions.
That personal interaction appears to have played an important role in making the platform seem legitimate.
Website Allegedly Shut Down After Collecting Money
The fraud allegedly came to light after the website was shut down and investors were unable to recover their money.
Police say the operators stopped returning investments after collecting funds from participants.
Investigators are now examining financial transactions to determine how much money was actually collected, where it was transferred and whether additional entities or individuals were involved.
The current estimate is that more than ₹10 crore may be involved.
Police have cautioned that the exact figure could change as more victims come forward.
Properties and Mobile Phones Seized
Police say properties linked to the accused in Zaheerabad and Rajahmundry have been seized or identified during the investigation, along with mobile phones and documents.
The seized devices are being examined for communications, account details, investor records and other digital evidence.
Investigators are also checking whether the platform had additional operators, payment handlers or promoters in other states.
Four other accused have been booked in the case.
What this means for you
Any investment scheme promising to double money within a fixed period while also paying high commissions for recruiting new members should be treated with extreme caution. Before putting money into a crypto platform, verify whether the company, website and investment product are genuine and regulated, and never rely only on screenshots or balances shown inside a private website.
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