Cyberabad police bust Transnational Crypto scam; Kadapa man arrested

Hyderabad: Cyberabad police have arrested a 22-year-old man involved in a transnational cybercrime operation that defrauded a software engineer of over ₹52 lakh through a fake cryptocurrency investment scheme. The scheme, which involved impersonating the global investment firm Morgan Stanley, was primarily operated via Telegram and WhatsApp.

The case, registered under FIR 4868/2024 in August, was based on a complaint from a 47-year-old victim, who reported a loss of 55,066 USDT (approximately ₹52,31,270) after investing in the fraudulent crypto scheme. The victim was promised a 20% daily return on investment and was contacted through UK-based WhatsApp numbers ( 44) by the perpetrators.

According to Cyberabad Police, the accused, Pathi Manikanta from Y.S.R. Kadapa district, Andhra Pradesh, was arrested for his role in trading cryptocurrency and managing mule accounts. The investigation revealed that the accused had been in contact with Chinese nationals and other criminal groups over Telegram to facilitate the scheme and launder the stolen funds across various cryptocurrency platforms, including Binance, KuCoin, and Trust Wallet.

Authorities also found UDHYAM registration certificates on the accused’s phone, which are believed to have been used to open mule bank accounts for the criminals. While Manikanta was arrested, an accomplice from Haryana remains at large.

The cybercrime operation’s transnational nature and the complexity of blockchain-based transactions led to the formation of a specialized team of cyber experts and tech-savvy police officers. Investigations have revealed links to China, Hong Kong, and the United Kingdom. The stolen assets were successfully seized by Binance with the court’s approval, and efforts are underway to recover the funds for the victim, with assistance from the Indian Cybercrime Coordination Centre (I4C) and other authorities.

Authorities have issued a public advisory urging citizens to be cautious when investing in cryptocurrency. They warned against schemes offering unrealistic returns and stressed the importance of verifying company credentials before making any investments.

In case of any fraudulent activity, the public is advised to report cybercrimes through the official portal www.cybercrime.gov.in or by calling 1930.

Public advisory:

1. Be wary of investment schemes promising returns that seem too good to be true (e.g., 20% returns per day).

2. Always verify investment offers on platforms like Telegram or WhatsApp offline.

3. Cryptocurrency investments are risky due to their decentralized nature.

4. Be cautious when transferring funds to cryptocurrency wallets as these transactions are not regulated.