Police in Adilabad have arrested two interstate accused in a cryptocurrency investment fraud case. Both are from Andhra Pradesh. Police announced the arrests on Sunday, October 11. The accused allegedly cheated around 500 victims through a Ponzi scheme and multi-level marketing. They ran a fake website in the name of a cryptocurrency platform and promised to double investments within two years.
Adilabad District Superintendent of Police Akhil Mahajan said hundreds of people across Telangana, Andhra Pradesh and other areas may have been cheated. He said the total amount involved is suspected to exceed Rs 10 crore. Three victims, from whom about Rs 21 lakh was collected, filed complaints with Adilabad One Town Police. Police registered cases against six persons, and two key accused were arrested.
Police said the accused offered investment packages ranging from Rs 1,000 to Rs 3 lakh. Members were offered commissions of up to 25 per cent for bringing in new investors. This encouraged participants to recruit more people. To build trust, the accused held meetings in different places and explained the scheme through online meetings and video conferences.
Investors had to register on the website and transfer money through online exchanges or digital payment platforms. The accused then allegedly showed cryptocurrency credits in the investors’ accounts. After collecting the money, they allegedly shut down the website and did not repay the investments. Police seized properties linked to the accused in Zaheerabad and Rajahmundry, along with mobile phones. Officers are examining the seized items and financial transactions to establish the roles of the remaining accused and identify more victims.
In a separate case, Adilabad Police arrested Raj Kumar Roy, alias Raj Kumar Kailash Rai, 69, the managing director of Unique Mercantile India Limited. The alleged investment fraud may have affected around 10,000 people across India. Police apprehended him near Adilabad Collectorate Chowk on the night of October 13, acting on credible information in a case registered at Talamadugu police station. Roy is the managing director and whole-time director of the company and is based in Thaltej, Ahmedabad, Gujarat.
SP Akhil Mahajan disclosed the details at a press conference at the Armed Reserve (AR) headquarters in Adilabad on Wednesday, October 14. He said investors were lured through agents with schemes in the names of Unique Mercantile India Limited and Unique SMCS. These included annual payment plans, monthly instalments and fixed deposits. Investors were promised their principal back with additional benefits, and some were assured of plots in prime locations. Many allegedly did not get their money even after the schemes matured. Preliminary findings point to transactions of around Rs 7 crore to Rs 8 crore involving about 2,000 members of the Adilabad branch. A second accused, Chandrasekhar, a zonal manager of Unique SMCS in Hyderabad, is absconding.
Police suspect the collected money was used to buy hotels, land and plots in several states. Investigators are examining alleged hotel purchases in Bengaluru, West Bengal, Jaipur and Maharashtra. They are also probing the alleged purchase of around 400 plots in Miyapur and about 200 acres near AIIMS Bibinagar. Fourteen cases have been registered across Telangana, including in Medak, Nizamabad, Karimnagar and Rajanna Sircilla districts. In Adilabad, cases are registered at the One Town, Two Town, Mavala, Adilabad Rural and Talamadugu police stations. Police are also checking reports of the accused’s alleged involvement in earlier frauds involving promises of a medical company, hotel jobs and jobs abroad.
SP Akhil Mahajan urged investors in the Unique companies who believe they were cheated to approach their nearest police station without fear. He asked victims to submit investment receipts, bank transaction statements, agreements and other supporting documents to help trace the money trail. He also cautioned the public against investing solely on promises of unusually high returns without verifying a company’s credibility.
