The Cyber Crime Police Station (CCPS) of Puducherry has successfully dismantled a major fraudulent cryptocurrency scheme that defrauded 11 investors in Puducherry of approximately Rs3.4 crore. The scheme also affected victims in other states across India. In connection with the case, the police have arrested two individuals, Nitish Jain and Aravind.
According to official reports, the accused used deceptive tactics to lure victims, promising high returns on cryptocurrency investments. However, they later prevented the victims from withdrawing their funds or receiving the promised cryptocurrency, TCX, which was later discovered to be fake.
The fraud was meticulously orchestrated under the guidance of Senior Superintendent of Police (C&I) Narra Chaitanya and Superintendent of Police (Cyber Crime) Dr. Bascarane. The scheme included a grand launch event in 2022, with high-profile celebrity guests like Tamannah and Kajol Agarwal in Mumbai and Coimbatore, respectively. The event attracted over 100 investors who collectively invested more than Rs1.10 crore. To further entice investors, the fraudsters distributed luxury cars to top contributors and organized lavish events, including a cruise ship event in Mumbai.
The Puducherry Cyber Police’s investigation uncovered that the accused routed the funds into accounts registered under the name “Hify Circle,” creating a fraudulent online platform displaying fake investment details and nonexistent TCX coins that couldn’t be exchanged. When the website shut down, investors were left empty-handed.
The scam, which spanned across multiple states including Delhi, Odisha, Maharashtra, Coimbatore, Bangalore, Andhra Pradesh, Kerala, and others, resulted in losses exceeding Rs50 crore.
Further investigations revealed the involvement of at least 10 more individuals, with suspects from Coimbatore, Bangalore, and Chennai. These include Damodharan, Noor Mohammad, Santhanam, Nandiyappan, Ganesan, Aliya, Reshma Parveen, Ansar, and Luqman. The key masterminds behind the operation, Syed Usman alias Babu and Imran Basha, have been identified, with Imran Basha arrested by the Raipur police.
A special police team is currently operating in Coimbatore and surrounding areas to track and arrest all remaining suspects. Authorities have assured the public that strict action will be taken against those involved in this large-scale financial fraud.
The police have urged citizens to be cautious of fraudulent investment schemes promising high returns through cryptocurrency, multi-level marketing (MLM) systems, and online share markets. If any suspicious activity is detected, the public is encouraged to contact the toll-free helpline at 1930.
