Odisha Crime Branch Nabs Andhra Pradesh Man in Major Cryptocurrency Scam
In a significant breakthrough in a high-value cyber fraud case, the Odisha Crime Branch on Monday arrested 39-year-old Vedgiri Srinivas Rao from Guntur, Andhra Pradesh. The arrest pertains to his alleged involvement in a sophisticated cryptocurrency trading scam that defrauded a Berhampur-based businessman of nearly Rs 6.16 crore.
Modus Operandi of the Fraudulent Scheme
According to police officials, Rao and his accomplices meticulously orchestrated this elaborate financial deception. They allegedly created a counterfeit cryptocurrency trading platform specifically designed to attract and trap unsuspecting investors with promises of extraordinary returns.
The case first came to the attention of authorities after the victim, a businessman from Berhampur, lodged a formal complaint with the cyber cell on July 9, 2024. In his complaint, he detailed a sequence of events that began in May 2024 when he was contacted on a popular social media platform.
The Elaborate Luring Process
A woman claiming to be a Hong Kong-based software developer initiated contact with the businessman. She skillfully enticed him to participate in digital currency trading, making bold promises of achieving 200% returns within just a few days. To add credibility to their scheme, the fraudsters later added the victim to a dedicated WhatsApp group where other members, posing as investment experts, provided detailed trading instructions and false encouragement.
"The woman presented herself as a knowledgeable professional from Hong Kong, building trust gradually before introducing the investment opportunity," explained a senior crime branch officer involved in the investigation.
Financial Transactions and Discovery
Between May 23 and June 24, 2024, the businessman transferred a staggering amount of Rs 6,16,37,084 to multiple bank accounts provided by the perpetrators. The transactions occurred over this month-long period as the victim continued to invest based on the fraudsters' recommendations and the appearance of growing profits on the fake platform.
The scheme began to unravel when the businessman attempted to withdraw his supposed profits. The accused initially made various excuses to delay the withdrawal process before completely ceasing communication. This sudden silence raised immediate red flags for the victim.
Investigation Findings and Previous Arrests
During their investigation, crime branch officers discovered substantial amounts of money had been credited to Rao's personal bank account, directly linking him to the financial trail of the scam. The officer further revealed that six of Rao's associates from Surat in Gujarat and Ludhiana in Punjab had already been arrested in connection with similar fraudulent activities last year, indicating this was part of a larger organized network.
The investigation uncovered that the fraudsters had created a completely fabricated e-wallet interface that displayed false and artificially inflated profits to maintain the victim's confidence in their scheme.
Psychological Manipulation Tactics
"The victim found himself completely locked out from accessing his funds despite what the platform displayed," the crime branch officer elaborated. "Whenever he attempted to initiate a withdrawal, the perpetrators would encourage him to wait for better market conditions or even solicit additional investments to maximize returns."
At one particularly manipulative point in the scheme, the businessman's trading account showed a negative balance of US$ 11,292. When he expressed concern to the woman who had initially contacted him, she advised him to invest more money to recover these apparent losses—a classic tactic used by financial scammers to extract additional funds from victims.
The Final Stages of the Scam
Although his account later reflected what appeared to be significant profits, the scammers introduced new obstacles when withdrawal was requested. A supposed customer care executive from the platform demanded payment of 20% of the total balance amount as a processing fee. When the businessman insisted on a full refund instead, the fraudsters escalated their demands, asking for an additional Rs 89 lakh before completely blocking his access to the platform.
The perpetrators then executed a clean disappearance act—they changed all their contact numbers, closed the WhatsApp group, and severed all communication channels. This final act confirmed the deception for the victim, who subsequently filed a First Information Report (FIR) with the cyber crime authorities.
This case highlights the increasing sophistication of cryptocurrency-related frauds in India and underscores the importance of due diligence before investing in digital assets through unfamiliar platforms.
