Two Held for Interstate Cryptocurrency Investment Fraud

The Adilabad One Town police on Sunday arrested two key accused in a cryptocurrency investment scam involving a six-member interstate gang. Police seized two mobile phones and documents related to two properties allegedly linked to the accused.

The gang is suspected of duping around 500 people in Telangana and Andhra Pradesh, with the alleged fraud estimated to be around ₹10 crore, police said.

Adilabad Superintendent of Police Akhil Mahajan said the accused allegedly lured people to invest through a Ponzi scheme and multi-level marketing network run through a website, promising to double their investment within two years.

The arrested persons have been identified as Polamarasetty Ratnaraju, 47, and Dondapati Lakshmana Rao alias Lazarus, 46, both from Andhra Pradesh, the SP said at a press conference in Adilabad on Sunday.

The case was registered on the complaint of Narsimulu of Ruyyadi village in Adilabad district, who allegedly invested ₹7.50 lakh in 2023.

He contacted the police after the accused allegedly did not return the money despite repeated calls.

Two other victims from Adilabad district reported losses of ₹7.50 crore and ₹6.21 crore.

The police have registered a case under Sections 420 and 409 of the IPC and Sections 3 and 4 of the Price and Money Circulation (Banning) Schemes Act. Further investigation is underway.

Published – 11 Oct 2026 20:04 IST