VIJAYAWADA: The AP Crime Investigation Department (CID) has cracked a transnational cryptocurrency investment fraud involving approximately USD 1.5 million (nearly Rs 15 crore), marking the first such breakthrough by the agency in the State.
AP CID chief Ravishankar Ayyanar said the CID team had traced the defrauded cryptocurrency to international exchange accounts, arrested eight accused and secured a court order for the return of the assets to the victim. A case (Cr No. 10/2025) was registered at the CID police station in Mangalagiri following a complaint by a Tenali-based woman who was cheated of `15 crore after being lured into investing in cryptocurrency with promises of high returns.
It revealed an organised international cybercrime syndicate that routed the proceeds through multiple cryptocurrency wallets, mule accounts and international platforms to conceal the money trail.
The victim had initially transferred funds from her bank accounts to 13 non-custodial cryptocurrency wallets, including one on Robinhood and 12 on Onchain. At the instance of the accused, she subsequently transferred cryptocurrency to two fraudulent investment platforms, Honeycombapi.org and Alibarbit.bit.
“A total of 27 transactions involving Bitcoin, Solana and Dogecoin, worth approximately USD 1.5 million, were made to these platforms. The proceeds were later routed through multiple layers before reaching Gate Global Corporation, a cryptocurrency exchange based in the Cayman Islands.
Through blockchain transaction analysis and international coordination, the CID traced 15 Bitcoin transactions to four accounts on the Gate.io exchange and identified assets linked to the accused. The assets were frozen through judicial proceedings,” Ravishankar explained.
The investigation, conducted with technical assistance from the Indian Cyber Crime Coordination Centre (I4C) under the Union Home Ministry, led to the arrest of eight accused. They include two persons from Hyderabad, two from Maharashtra, one from Malaysia, two from China and one from Portugal. A chargesheet has also been filed before the competent court against the organised syndicate.
In a significant development, the VI Additional Junior Civil Judge-cum-Special Court for CID Cases, Guntur, issued a property return order on October 30, 2026, in Crl.M.P. No. 298/2026. The court directed Gate Global Corporation to convert the cryptocurrency held in the four identified accounts into USDT at the prevailing market value and transfer the entire amount to the victim’s designated wallet.
A reward of `10,000 has been announced for the team comprising Inspector Dasari Kasi Viswanadh, Head Constable B Venkateswara Rao and T Vijay Krishna for tracing and securing the cryptocurrency assets.
The CID advised the public to exercise caution while investing in cryptocurrency and online schemes, particularly those promising guaranteed or unusually high returns. Victims of online financial fraud have been advised to contact the national cybercrime helpline 1930 or register complaints at www.cybercrime.gov.in to facilitate timely action.
