Tamil Nadu Police Transfer FQL Crypto Scam Probe To Economic Offences Wing

The Tamil Nadu Police have transferred all six cases linked to an alleged multi-level marketing and cryptocurrency trading scam involving FQL to the Economic Offences Wing. The decision comes after a large volume of complaints were filed by victims across four southern districts.

Director General of Police Dr Mahesh Kumar Aggarwal ordered the transfer citing the extensive number of victims, the inter-district spread of the alleged fraud, the use of cryptocurrency transactions involving USDT and Binance wallets, and suspected international linkages.

The cases involve entities operating under the names FQL Investment Trading, FQL Exchange App, and the VG Investment Group Syndicate. According to the police, the alleged scheme had been active for seven months. Local agents allegedly lured people by promising unusually high daily returns and claiming investments would double within 40 to 45 days through cryptocurrency trading.

Preliminary investigations revealed that investors were instructed to pay in cash or via UPI and G-Pay. A portion of these collected funds was then converted into Tether (USDT) and credited to FQL and VG digital wallets. While the total sum involved has not been specified in official police statements, the scheme led to widespread financial losses.

The alleged fraud unraveled when investors attempted to withdraw their funds. Withdrawal requests failed, account balances became inaccessible, and investors were asked to make further payments. The trading application was eventually shut down, leaving victims unable to retrieve their money.

So far, six cases have been formally registered: three in Madurai, and one each in Dindigul, Virudhunagar, and Sivagangai. Authorities have arrested 17 accused individuals, who have since been remanded in judicial custody. Additionally, 13 bank accounts connected to the accused have been frozen by investigators.

The case transfer followed large-scale complaints lodged in Madurai, with victims from localities including Melur and Alanganallur approaching law enforcement. Many investors also submitted petitions at the Madurai District Collectorate, where designated officials have been collecting details of transactions and losses. Victims have requested a comprehensive probe into the entities and the recovery of their invested funds.