The Tamil Nadu Police has transferred the investigation into six cases linked to an alleged FQL multi-level marketing and cryptocurrency trading scam to the Economic Offences Wing (EOW).
The decision follows a large number of complaints from alleged victims in Madurai and other southern districts, along with preliminary findings of cryptocurrency-linked financial transactions.
Police said investors were allegedly lured with promises of unusually high daily returns and assurances that their investments could be doubled within 40 to 45 days through cryptocurrency trading.
The cases involve FQL Investment Trading, FQL Exchange App and VG Investment Group Syndicate. According to the police, the alleged network had been operating for around seven months.
Local agents allegedly approached potential investors and promoted the scheme by claiming that cryptocurrency trading could generate consistently high returns. Investors were allegedly asked to make payments through cash, G-Pay and UPI.
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The preliminary investigation has also indicated that a portion of the collected funds was allegedly converted into Tether (USDT). The converted funds were then allegedly credited to wallets associated with FQL and VG. Investigators are expected to examine transactions involving Binance-linked wallets and possible international connections. Police have not yet disclosed the total amount allegedly lost by investors.
Investors Unable to Withdraw Funds
According to complaints, investors were initially shown increased balances and returns in their accounts, allegedly encouraging them to put more money into the scheme. However, when they attempted to withdraw their funds, the transactions reportedly failed. Several investors also allegedly lost access to the balances displayed in their accounts.
Some investors were subsequently allegedly asked to make additional payments. Around the same period, the FQL-linked application was shut down, leaving investors unable to access their purported balances. Following this, a large number of people approached the police and district administration, seeking recovery of their money and a detailed investigation into the alleged network.
Six cases have been registered so far. Three cases were registered in Madurai, while one each was registered in Dindigul, Virudhunagar and Sivaganga. Police have arrested 17 accused persons, who have been remanded in judicial custody. Thirteen bank accounts allegedly linked to the accused have also been frozen as part of the investigation.
Complaints Increase in Madurai
The number of complaints increased significantly in Madurai, prompting the district administration to begin collecting details from investors. People from areas including Melur, Alanganallur and neighbouring regions have approached authorities with details of their alleged investments and losses.
Special officials at the Madurai District Collectorate are receiving petitions and collecting information about the amounts invested and the losses allegedly suffered by victims. The complainants have sought recovery of their funds and a comprehensive investigation into FQL and individuals allegedly associated with the operation.
Police said several investors were initially convinced by the high returns allegedly displayed through the scheme. The inability to withdraw funds and the subsequent shutdown of the application led many of them to suspect that they had been defrauded.
The decision to transfer the cases to the EOW was taken considering the large number of potential victims, the alleged inter-district nature of the operation, cryptocurrency-linked financial transactions, the use of USDT and Binance wallets, and suspected international connections.
The investigation is likely to focus on tracing the movement of the alleged proceeds through bank accounts, UPI transactions, cryptocurrency wallets and digital platforms. Investigators are also expected to identify the ultimate beneficiaries of the funds and determine whether additional individuals or entities were involved in the alleged network.
