Andhra CID cracks international crypto fraud; court orders return of ₹15 crore to Tenali woman

The investigation exposed an organised cybercrime syndicate that allegedly lured the woman into investing in cryptocurrency by promising exceptionally high returns. The fraudsters reportedly used multiple digital wallets, fraudulent investment platforms and international cryptocurrency exchanges to move the money and conceal its trail. The CID described the operation as the first such breakthrough by the agency in the state.

According to investigators, the victim initially transferred funds from her bank accounts into 13 non-custodial cryptocurrency wallets — one linked to Robinhood and 12 on Onchain. On the instructions of the accused, she subsequently transferred the cryptocurrency to two allegedly fraudulent investment platforms, Honeycombapi.org and Alibarbit.bit, believing them to be legitimate.

The investigation identified 27 transactions involving Bitcoin, Solana and Dogecoin, collectively worth approximately USD 1.5 million, or nearly ₹15 crore. The funds were routed through multiple layers of transactions and intermediary accounts before reaching Gate Global Corporation, a cryptocurrency exchange based in the Cayman Islands.

Using detailed blockchain transaction analysis, technical investigation and international coordination, the CID traced 15 Bitcoin transactions to four accounts on the Gate.io exchange that were allegedly linked to the syndicate. The identified cryptocurrency assets were subsequently frozen through judicial proceedings.

The investigation was carried out with technical assistance and coordination from the Indian Cyber Crime Coordination Centre (I4C) under the Union Ministry of Home Affairs. The agency identified and arrested eight accused in connection with the alleged fraud. They include two persons from Hyderabad, two from Maharashtra, two from China, and one each from Malaysia and Portugal. A charge sheet has also been filed before the competent court.

The most significant development came on October 30, when the VI Additional Junior Civil Judge-cum-Special Court for CID Cases in Guntur issued a Return of Property Order.

The court directed Gate Global Corporation to convert the cryptocurrency assets held in the four identified accounts into USDT, a stablecoin pegged to the US dollar, at the prevailing market value and transfer the entire converted amount to the victim's designated cryptocurrency wallet.

The order marks an important step towards restoring the money lost by the victim. However, the actual transfer and receipt of the assets would be subject to the implementation of the court's directions.

The CID has advised the public to exercise extreme caution while investing in cryptocurrency and online investment schemes. It has warned people against platforms and individuals promising guaranteed or unusually high returns and urged investors to verify the authenticity of exchanges and investment platforms before transferring money.

The investigation demonstrates how blockchain analysis and international coordination can help law enforcement agencies trace digital assets across borders and pursue the recovery of money lost in sophisticated cyber frauds.