The Economic Offences Wing (EOW) will now investigate the multi-level marketing (MLM)-cum-cryptocurrency trading fraud operated under the names ‘FQL Investment Trading’, ‘FQL Exchange App’, and ‘VG Investment Group Syndicate’ across Madurai, Virudhunagar, Dindigul, and Sivaganga districts over the past seven months. Hundreds of residents had recently complained of being duped by the ponzi scheme.
Agents associated with the scheme allegedly induced members of the public to invest money by promising abnormally high daily returns and claiming that their investments could be doubled within 40–45 days through cryptocurrency trading.
Director-General of Police/Head of Police Force (DGP/HoPF) Mahesh Kumar Aggarwal said several petitions and complaints had been received from alleged victims across the four districts. Based on information about the functioning of the scheme, the Madurai district police conducted preliminary enquiries with agents and investors to ascertain the nature and operations of the purported cryptocurrency trading platform.
Following specific complaints and preliminary verification, six cases have so far been registered in connection with the alleged fraud — three in Madurai district and one each in Dindigul, Virudhunagar, and Sivaganga districts. Investigation into the cases is under way. So far, 17 accused persons have been arrested and remanded in judicial custody, while 13 bank accounts linked to the accused have been frozen as part of the investigation.
The DGP said preliminary investigation indicated that local agents allegedly collected investments from the public through cash and G-Pay/UPI transactions. A portion of the funds was allegedly converted into Tether (USDT) and transferred to FQL/VG wallets. Subsequently, investors reportedly faced difficulties in withdrawing their money, with balances becoming inaccessible and additional payments being demanded. The application was later shut down, leaving investors unable to access their purported balances.
Considering the number of accused, the extent of the network, the inter-district nature of the alleged fraud, the large number of victims, the reported financial losses, cryptocurrency transactions involving USDT and Binance wallets, and suspected international linkages, the State police decided to transfer the cases for a detailed investigation, said Mr. Aggarwal while ordering the transfer of all six cases to the EOW.
Transfer of cases has been ordered for a systematic and in-depth investigation in public interest.
Published – September 01, 2026 05:30 am IST
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