FQL investment fraud draws over 40,000 complaints in Madurai and neighbouring districts

More than 40,000 complaints have been received from Madurai and neighbouring districts in connection with an alleged cryptocurrency investment fraud operated under the names FQL Investment Group Syndicate and FQL Investment Trading, with the total financial loss estimated at over ₹200 crore, said P.Viswanathan, Higher Education Minister on the floor of the assembly. On Monday, Mr. Viswanathan represents Melur Assembly constituency and presented a statement in this regard on the floor of the assembly. The scheme, allegedly linked to a Multi-Level Marketing (MLM) model, promised investors high returns through cryptocurrency trading. Investors were reportedly asked to invest a minimum of ₹50,000, which was converted into cryptocurrency through wallets. The operators allegedly promised daily earnings of ₹2,000 and claimed that the investment would double in 40 to 45 days through 'Copy Trading' and 'Daily Reward Point' activities. The scheme was promoted in Madurai, Dindigul, Virudhunagar, Sivaganga and other districts. Ranjith of Kattaiyampatti in Melur taluk, who had returned to India after working abroad, allegedly promoted the scheme locally with the assistance of family members and friends. Based on confidential information, the Melur Deputy Superintendent of Police conducted a preliminary inquiry on the directions of the Madurai District Superintendent of Police. On May 31, Ranjith and two others gave written assurances that they would stop promoting the investment scheme. However, complaints subsequently surfaced from investors who were unable to withdraw their money. On August 27, Senthilkumar approached the Madurai District Cyber Crime Police, alleging that his investment of ₹50,000 (839 USDT) had disappeared from his FQL wallet and that the organisers had refused to return the money. A case was registered under Section 318(4) of the Bharatiya Nyaya Sanhita (BNS) and Section 66D of the Information Technology Act. Mr. Viswanathan said seven persons were arrested on August 28 and remanded in judicial custody. Lookout Circulars have been issued against key accused Ranjith and Arun, while the bank accounts of 13 accused have been frozen. The alleged fraud also triggered protests. Around 250 investors staged a road blockade in Melur on August 28, demanding the return of their money. The protest was withdrawn after the Madurai District Superintendent of Police held talks with them. A case was registered in connection with the road blockade. Police also registered a preventive case after some affected investors allegedly attempted to enter the house of one of the accused and damage property. Two more cases were registered by the Madurai District Crime Branch-I on August 29 following complaints from investors. Five persons were arrested in one case, while two persons were arrested in the other. In all, 17 accused have been arrested in three cases registered in Madurai district and remanded in judicial custody. A special team comprising 10 police personnel has been formed under the direct supervision of the Melur Deputy Superintendent of Police to trace and arrest the remaining accused. The passports of the accused have been blocked and details of their properties collected as part of the investigation. Considering the inter-district nature of the alleged fraud and the huge amount involved, the Director-General of Police has ordered the transfer of the investigation into three cases registered in Madurai district to the Economic Offences Wing (EOW). Cases registered in Dindigul, Virudhunagar and Sivaganga districts in connection with FQL Investment Trading have also been transferred to the EOW. Mr. Viswanathan said the Madurai District Police have launched an awareness campaign through newspapers, television and social media, urging investors not to travel to Madurai to lodge complaints. They have been advised to approach their local police stations or Cyber Crime Police stations, or call the cybercrime helpline 1930. Published- September 08, 2026 01:03 am IST