DGP Transfers Multi-District Cryptocurrency MLM Fraud Probe to EOW

Director General of Police Mahesh Kumar Aggarwal has transferred the investigation into multi-level marketing (MLM) and cryptocurrency trading fraud cases reported across Madurai, Virudhunagar, Dindigul, and Sivagangai districts to the Economic Offences Wing (EOW).

According to a press release issued from the DGP office in Chennai, the fraudsters operated under the names 'FQL Investment Trading', 'FQL Exchange App', and 'VG Investment Group Syndicate'. Over the past seven months, scheme agents allegedly induced members of the public to invest funds by promising unusually high daily returns and claiming that investments would double within 40 to 45 days through cryptocurrency trading.

Following multiple complaints from victims across the four southern districts, local police conducted preliminary verifications and registered six cases. Madurai district police initiated initial inquiries with agents and investors to determine how the purported cryptocurrency trading mechanism functioned.

Police have so far arrested 17 accused individuals and remanded them to judicial custody. Additionally, 13 bank accounts linked to the accused have been frozen as part of the ongoing probe.

Preliminary investigations revealed that local agents collected money from the public through cash, G-Pay, and UPI transactions. A portion of the funds was converted into Tether (USDT) and credited to FQL and VG wallets. Subsequently, investors found themselves unable to process withdrawals or access account balances, while operators demanded additional payments before shutting down the application entirely.

State police noted that the probe was transferred to the EOW due to the inter-district spread of the fraud, the large number of affected investors, the significant financial losses, and the involvement of cryptocurrency networks, Binance wallets, and suspected international linkages. The EOW will now handle the six registered cases to ensure a systematic and comprehensive investigation.