A 22-year-old man, Pathi Manikanta, was arrested on February 20 in Hyderabad for a cryptocurrency fraud involving impersonation of Morgan Stanley, an investment banking company.
Manikanta, from YSR Kadapa district in Andhra Pradesh, was connected with crypto traders, agents, and Chinese nationals. A case was filed against him in 2024 by the Cyberabad cybercrime unit, based on a complaint from a software engineer who was duped of 55,066 USDT (approximately Rs52.31 lakh). The victim was misled into investing in a fraudulent crypto scheme that promised a 20% daily return.
Manikanta used WhatsApp and Telegram to contact the victim, utilizing 44 UK-based phone numbers and impersonating Morgan Stanley to gain his trust. The fraudsters used sophisticated techniques to launder the crime proceeds across multiple crypto platforms such as Binance, Kucoin, and Trust Wallet.
The police conducted a technical investigation, and the interrogation revealed that the scam had international connections, including ties to China, Hong Kong, and the United Kingdom. Manikanta was also in contact with other Chinese criminal groups for the purchase and supply of mule bank accounts. Udhyam registration certificates were recovered from his phones, suspected to be used for opening fraudulent bank accounts.
Following a court order, Binance seized the stolen assets. The police are also seeking assistance from the Indian Cyber Crime Coordination Centre (I4C), the Ministry of Home Affairs (MHA) cryptocurrency investigation team, and FIU-Ind to help expedite the recovery of funds for the complainant.
