An alleged large-scale financial fraud linked to cryptocurrency investments has come to light in Madurai and neighbouring districts of Tamil Nadu. More than 40,000 complaints have reportedly been received against an investment network operating under the names FQL Investment Group Syndicate and FQL Investment Trading. The total financial loss reported by investors is estimated to be more than ₹200 crore. Considering the scale of the alleged fraud and its spread across several districts, the investigation has been transferred to the Economic Offences Wing (EOW).
Higher Education Minister P. Viswanathan informed the State Assembly on Monday that the alleged investment scheme operated on a multi-level marketing (MLM) model. Investors were reportedly promised unusually high and regular returns through cryptocurrency trading. Participants were allegedly required to invest a minimum of ₹50,000, which was converted into cryptocurrency and deposited into designated digital wallets.
Investors were allegedly promised earnings of up to ₹2,000 per day. The operators also reportedly claimed that investments could double within 40 to 45 days through activities described as “Copy Trading” and “Daily Reward Point” programmes. The promise of quick and substantial returns allegedly attracted a large number of investors.
The scheme was reportedly promoted in Madurai, Dindigul, Virudhunagar, Sivaganga and other districts. Ranjith, a resident of Kattaiyampatti in Melur taluk who had returned to India after working abroad, allegedly promoted the scheme locally with the assistance of family members and acquaintances.
Following confidential information, police initiated a preliminary inquiry into the activities. On May 31, Ranjith and two others reportedly gave written assurances that they would stop promoting the investment scheme. However, complaints subsequently emerged from investors who claimed they were unable to withdraw their money.
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On August 27, Senthilkumar approached the Cyber Crime Police and alleged that his ₹50,000 investment, equivalent to 839 USDT, had disappeared from his FQL digital wallet. He further alleged that the organisers refused to return the money. A case was registered under Section 318(4) of the Bharatiya Nyaya Sanhita (BNS) and Section 66D of the Information Technology Act.
Seven accused were arrested on August 28 and remanded in judicial custody. Lookout Circulars have been issued against key accused Ranjith and Arun, while bank accounts linked to 13 accused have been frozen. Investigators are examining the alleged flow of funds and the role of other individuals connected to the network.
The alleged fraud also led to protests by investors. Around 250 investors blocked a road in Melur on August 28, demanding the return of their money. The protest was withdrawn after discussions with the police. A separate case was registered in connection with the road blockade. Preventive action was also taken after some affected investors allegedly attempted to enter the house of one of the accused and damage property.
On August 29, two more cases were registered by the Madurai District Crime Branch following complaints from investors. Five people were arrested in one case, while two were arrested in the other. With these arrests, a total of 17 accused have been arrested in three cases registered in Madurai district and remanded in judicial custody.
A special team comprising 10 police personnel has been formed to trace and arrest the remaining accused. The passports of the accused have been blocked, while details of their properties have also been collected as part of the investigation.
Given the alleged inter-district nature of the fraud and the large amount involved, the investigation into the three cases registered in Madurai district has been transferred to the Economic Offences Wing. Cases registered in Dindigul, Virudhunagar and Sivaganga districts in connection with FQL Investment Trading have also been transferred to the EOW.
Authorities have urged investors not to travel to Madurai to file complaints. They can approach their local police station or Cyber Crime Police station. Victims of cyber fraud have also been advised to report the matter immediately through the national cybercrime helpline 1930.
