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A 25-year-old man in Tamil Nadu’s Dindigul district died by suicide on September 1, 2026, after allegedly coming under pressure from investors who had put money into an investment scheme through him, as police investigate a wider crypto scam involving alleged multi-level marketing and cryptocurrency trading operations.
The deceased, identified as A Raja, had reportedly encouraged several people to invest in the scheme. When investors were allegedly unable to withdraw their money, they turned to Raja and demanded that he return their funds. A senior police officer said Raja was under pressure from people he had persuaded to invest.
The case is now part of a broader crypto scam investigation spanning several districts in Tamil Nadu. Authorities have registered six cases, arrested 21 people and frozen 13 bank accounts linked to the accused. Police say complaints received so far indicate losses of at least Rs. 25 crore, although that figure is not considered a final assessment.
The alleged operation involved FQL Investment Trading, the FQL Exchange App and VG Investment Group Syndicate. According to the investigation, local operators attracted investors by promising unusually high daily returns through cryptocurrency trading.
Investors were allegedly told that their money could double within 40 to 45 days. Such promises became a central feature of the suspected crypto scam, with operators allegedly using the prospect of rapid profits to attract participants.
The alleged scheme operated across Madurai, Dindigul, Virudhunagar and Sivaganga districts, according to the report.
Investors reportedly made payments through several channels, including cash, GPay and UPI. Investigators also found that some of the funds appeared to have been converted into Tether, or USDT, and transferred into FQL/VG wallets.
The use of cryptocurrency has added another layer to the investigation because authorities must establish how money moved between conventional payment channels and digital-asset wallets.
Police have so far received complaints indicating losses of at least Rs. 25 crore. However, investigators have emphasized that the amount is based on complaints received to date and could change as additional victims come forward.
The reported losses and the number of alleged victims have also expanded the scope of the crypto scam probe beyond the individual investors who initially filed complaints.
Authorities have registered six cases connected to the alleged FQL operation and arrested 21 people, including the alleged promoter.
A senior police officer was quoted by NDTV as confirming the arrests. The investigation is examining the activities of the alleged operators as well as the network through which investors were recruited and their money transferred.
The authorities have also frozen 13 bank accounts associated with the accused as investigators attempt to prevent further movement of suspected proceeds and reconstruct the financial trail.
The investigation is particularly significant because the alleged crypto scam appears to have combined conventional investment solicitation with cryptocurrency transactions.
While investors reportedly made payments through cash and widely used digital payment systems, portions of the funds were allegedly converted into USDT and moved through wallets connected to the FQL/VG operation.
That combination could make tracing the full flow of funds more complicated, particularly if money moved through multiple accounts or digital wallets.
Authorities are expected to examine the relationship between the investment entities, the people who recruited investors and the wallets that allegedly received cryptocurrency.
Tamil Nadu Director General of Police Dr Mahesh Kumar Aggarwal has transferred all six cases to the Economic Offences Wing, or EOW.
Police cited several factors behind the decision, including the number of alleged victims, the suspected scale of financial losses, cryptocurrency transactions and possible international connections.
The EOW takeover places the crypto scam investigation under a specialized economic-offences unit as authorities seek to establish the full scale of the alleged operation.
Investigators will focus on tracing the money trail and determining where investors’ funds ultimately went. They will also seek to identify individuals who may have been part of the wider network.
The investigation could therefore extend beyond the people already arrested if financial records, wallet transactions and other evidence point to additional participants.
The death of Raja has added a tragic dimension to the case. According to the report, investors allegedly pressured him after they were unable to recover their money, despite his reported role in encouraging people to participate in the scheme.
Police are investigating the circumstances surrounding his death separately while continuing the financial investigation.
The case also illustrates the risks created when investment schemes promise exceptionally rapid returns through cryptocurrency trading. A promise that an investment will double within 40 to 45 days can attract individuals seeking quick profits, but it can also leave participants exposed to substantial losses if withdrawals become impossible.
For investigators, the immediate priority is to establish how the alleged crypto scam operated, identify the flow of funds and determine the responsibilities of those involved.
The authorities have not yet announced a final estimate of the alleged losses or concluded the investigation. The Rs. 25 crore figure remains based on complaints received so far and may change as the EOW examines additional evidence and potential victims.
With six cases consolidated under the EOW, 21 arrests already made and 13 bank accounts frozen, the investigation is now moving toward a broader examination of the alleged network, its financial infrastructure and the cryptocurrency wallets through which part of the money was reportedly transferred.
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