Chennai — A 41-year-old man, S Ramakrishna Reddy, has been arrested by the Cyber Crime Police for allegedly orchestrating a cryptocurrency scam through his company, Bitcoin India Software Services.
The arrest followed a complaint by a 35-year-old man from Jubilee Hills, who reported losing Rs8.4 lakh after purchasing 256,416 Siacoin (SC) through the Bitcoin India Wallet & Exchange platform.
According to police, the victim’s account was suspended, locked, and eventually showed a zero balance. The company claimed the deductions were due to maintenance fees, but no valid justification was provided.
Investigations revealed that Reddy, along with his brother, had developed the fraudulent platform to target cryptocurrency traders across India. They operated through a dedicated website and mobile app, and systematically blocked user withdrawals, siphoning off customer funds.
Police stated that multiple victims may have been affected in a similar manner, and further complaints are expected to surface.
A case has been registered under:
Sections 66(C) and 66(D) of the Information Technology Act, 2008
Sections 419 and 420 of the Indian Penal Code (IPC) for cheating and identity fraud
The Cyber Crime Department has urged anyone who used the Bitcoin India Exchange and faced similar issues to come forward.
