Two held for inter-State cryptocurrency investment fraud
Police in Adilabad have arrested two individuals for operating a cryptocurrency-based Ponzi scheme that allegedly defrauded 500 people of ₹10 crore. The suspects promised to double investments within two years through a multi-level marketing network.
Why it matters
It reflects the growing prevalence of financial fraud targeting retail investors through unregulated digital asset schemes.
The Adilabad One Town police arrested two key accused in a cryptocurrency investment fraud involving a six-member inter-State gang on Sunday. The police seized two mobile phones and documents relating to two properties allegedly linked to accused.
The gang is suspected of having cheated around 500 people across Telangana and Andhra Pradesh, with the alleged fraud estimated at about ₹10 crore, the police said.
Adilabad Superintendent of Police Akhil Mahajan said the accused allegedly lured people into investing through a Ponzi scheme and multi-level marketing network operated via a website, promising to double their investments within two years.
The arrested persons were identified as Polamarasetty Ratnaraju, 47, and Dondapati Lakshmana Rao alias Lazarus, 46, both from Andhra Pradesh, the SP said at a press conference in Adilabad on Sunday.
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