Chennai police arrest two in Rs 90 lakh online investment scam involving cryptocurrency
The arrests follow a detailed investigation into a complaint filed by Dr G Moorthy, who alleged he was duped by a fake trading platform.;
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CHENNAI: The Cyber Crime Police Station of the Central Crime Branch, Greater Chennai Police, has arrested two individuals linked to a major online trading investment scam that defrauded a complainant of Rs 90 lakh.
The arrests follow a detailed investigation into a complaint filed by Dr G Moorthy, who alleged he was duped by a fake trading platform.
According to police officials, the case was registered under Sections 316(2) and 318(4) of the Bharatiya Nyaya Sanhita (BNS) and Section 66D of the IT Act, 2000. Dr. Moorthy reported investing Rs 90.77 lakh in a fraudulent online trading platform after being lured by promises of high returns. The funds were transferred to multiple mule bank accounts controlled by the scammers.
During the probe, investigators traced the money trail and identified the accused as TP Arun Kumar, 33, from Salem and K Kannan, 41 from East Tambaram, Chennai. Police revealed that the duo allegedly converted the illicit funds into cryptocurrency (USDT) via peer-to-peer (P2P) transactions on the Binance platform, earning a 25% commission for their role in laundering the money.
Both accused were produced before the XI Metropolitan Magistrate Court in Saidapet and remanded to judicial custody.
Authorities highlighted that such scams typically target victims through social media advertisements on platforms like Facebook, Instagram, and YouTube. Fraudsters promote fake stock trading apps or websites, urging users to open demat accounts with promises of “exceptional profits.” The Greater Chennai Police warned that scammers exploit victims’ greed by offering unrealistic short-term gains.
A Arun, Commissioner of Police, Greater Chennai Police, cautioned citizens against falling for high-return investment schemes. “Do not transfer money to unknown accounts or trust unverified apps and websites. Verify the authenticity of platforms before investing,” he stated.
The public is urged to report cybercrimes via the national helpline (1930) or file complaints at www.cybercrime.gov.in.