Indian Man Arrested for $11 Million Crypto Scam Using WhatsApp, Authorities Still Searching for Funds

Indian Man Arrested for Crypto Scam, Defrauding Investors of $11 Million

Authorities in India have arrested 47-year-old suspect Kurrimela Ramesh Goud, who allegedly swindled investors of over Rs. 95 crores ($11 million) in a large-scale cryptocurrency fraud.

The suspect's fraudulent operations targeted around 43 victims, convincing them to invest large sums through a fake cryptocurrency platform.

The Scheme and the Method of Operation

Goud, a resident of Jangoan District, is accused of luring unsuspecting investors with promises of high returns through a bogus crypto investment website registered under the name 'GBR.'

According to the Telangana Criminal Investigation Department (CID), the suspect used WhatsApp groups to reach potential investors, offering them an enticing platform that promised returns far exceeding any legitimate crypto ventures.

One of the victims, Arra Mano from Karimnagar, filed a complaint, revealing that he and other investors transferred funds to Goud’s personal accounts, as well as those of his family members.

However, when investors began requesting their returns, they were met with resistance.

Mano described how Goud refused to return their investments or the promised profits, leaving them with significant financial losses.

Investors Fooled by Early Success

In the initial stages of the scheme, everything seemed legitimate, and returns were paid to investors, which built trust and attracted more participants.

However, when the stakes grew larger, Goud cut off communication with the investors, leaving them stranded with no way to recover their funds.

Shika Goel, the Director General of Telangana CID, shared,

“The victims were urged to visit the site through a link, promising high cryptocurrency yield.”

She further stated that many investors were motivated to take loans to fund their investments, believing the returns would more than compensate for the borrowed amounts.

It wasn’t until they sought to withdraw their funds that the deception became clear.

Criminal Investigation Underway

Following the complaint from Mano, police acted swiftly and began investigating Goud’s activities.

The case is being handled under the Telangana Protection of Depositors and Financial Establishment Act of 1999 and the Prize Chits and Money Circulation Scheme (Banning) Act of 1978.

Officers quickly apprehended Goud, who is currently in judicial custody.

Despite the arrest, investigators have yet to recover any of the stolen funds.

Authorities believe that Goud may have hidden the money within a cryptocurrency platform, making it harder to trace.

CID officers are working to track the funds' movement and locate where the money was transferred.

More Victims Expected to Come Forward

Authorities are confident that more victims will come forward as news of the scam spreads.

As some victims might not yet have realised they’ve been scammed, the official count could rise beyond the initial 43 reported.

While Goud had made partial repayments to some victims earlier, investigators believe this was part of his strategy to gain their trust before disappearing with larger sums.

Authorities expect more people to file complaints as they become aware of the situation.

They are also looking to arrest other individuals linked to Goud’s fraudulent network.

Public Warned Against Unverified Crypto Schemes

In the wake of this scam, authorities are urging the public to be cautious of unverified cryptocurrency investment platforms.

This warning comes as the number of similar fraudulent schemes has been rising in recent months.

Experts recommend that individuals looking to invest in crypto assets should do so through well-established and reliable platforms to avoid falling victim to scams like this one.

While the authorities are yet to recover the stolen funds, they are optimistic about tracing the money's movement and ensuring those responsible for the scheme are held accountable.