Tamil Nadu Economic Offences Wing Takes Over MLM Cryptocurrency Scam Probe

The Economic Offences Wing in Tamil Nadu has taken over an investigation into alleged cryptocurrency trading scams involving Multi-Level Marketing (MLM) schemes. The probe, initially handled by local police in Madurai and other districts, was transferred due to its complex nature and suspected international linkages.

According to a press release from the Director General of Police (DGP) office, the scammers operated under various names, including 'FQL Investment Trading', 'FQL Exchange App', and 'VG Investment Group Syndicate'. They allegedly promised unusually high daily returns and claimed that investments could be doubled within 40-45 days through cryptocurrency trading.

Complaints from victims in Madurai, Virudhunagar, Dindigul, and Sivagangai districts prompted the police to start an investigation. So far, 17 accused have been arrested and remanded to judicial custody, while 13 bank accounts linked to the suspects have been frozen.

The preliminary probe suggests that local agents induced people to invest in cryptocurrency trading through cash and digital transactions, with some funds converted into Tether (USDT) and credited to FQL/VG wallets. When withdrawals failed, additional payments were demanded, leaving investors unable to access their supposed balances.