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HYDERABAD: The Andhra Pradesh Crime Investigation Department (CID) has busted a transnational cryptocurrency investment fraud involving approximately Rs 15 crore that spanned across at least five countries on three continents. Investigators tracked a sophisticated laundering network that moved digital funds through 13 non-custodial wallets, two fraudulent investment platforms, and multiple intermediary transaction layers to obscure the trail. Following a detailed blockchain examination and the freezing of digital assets, a special court in Guntur has directed the identified cryptocurrency holdings to be converted into USDT, a dollar-pegged stablecoin, and returned directly to the victim.
Fake portals and multi-layered crypto transfers lure Tenali resident
The fraud originated from a complaint lodged in October 2025 at the CID police station in Mangalagiri by a woman residing in Tenali. The victim was induced to invest in virtual assets under assurances of substantial returns, ultimately losing approximately USD 1.5 million, which translates to nearly Rs 15 crore. The initial transfers moved from her bank accounts into 13 non-custodial crypto wallets, comprising one wallet connected to Robinhood and 12 maintained on the Onchain platform.
Acting under instructions from the syndicate, the victim transferred virtual currencies from these wallets to two bogus entities, Honeycomapi.org and Alibarbit.bit. She deposited funds under the mistaken belief that these sites were legitimate investment operations generating real-time profits. A total of 27 transactions involving Bitcoin, Solana, and Dogecoin were executed across the two platforms, totaling USD 1.5 million. The fraudsters subsequently diverted the assets through numerous layers of transactions and mule accounts to mask the origin, ownership, and destination of the funds.
Blockchain tracking leads to Cayman Islands exchange and asset freeze
The forensic money trail eventually led CID investigators to Gate Global Corporation, a cryptocurrency exchange located in the Cayman Islands. A thorough analysis of blockchain ledgers revealed that 15 Bitcoin transactions were deposited into four specific accounts maintained on the Gate.io platform, which were linked directly to members of the criminal syndicate. The identified cryptocurrency holdings were frozen through judicial orders before they could be transferred further.
The technical investigation made extensive use of blockchain analysis and received assistance from the Indian Cyber Crime Coordination Centre (I4C), functioning under the Union Home Ministry. With institutional coordination across domestic and foreign enforcement agencies, the investigation established definitive links between the suspect exchange profiles, transaction logs, and the operating members of the syndicate.
Four suspects held in domestic raids while overseas links remain under probe
The enforcement operation resulted in the arrest of four key accused, with two apprehended from Hyderabad and two others detained in Maharashtra. In addition to the domestic syndicate members, investigators have identified four other suspects operating from abroad, including one individual in Malaysia, two in China, and one in Portugal. The CID has submitted a formal chargesheet before the special court in Guntur, while continuing to investigate the overseas conduits.
The proceedings took a crucial step toward financial restitution on October 30, when the Sixth Additional Junior Civil Judge-cum-Special Court for CID cases in Guntur directed the return of the seized property. The court instructed a cryptocurrency company to liquidate the identified digital assets into USDT and transfer the sum to the complainant. The execution of this conversion and restitution process marks a notable measure in cross-border cryptocurrency asset recovery, as authorities pursue the remaining international beneficiaries.
