AP CID Busts Rs 15 Crore International Cryptocurrency Investment Fraud

The Andhra Pradesh Crime Investigation Department (CID) has busted an international cryptocurrency investment fraud involving nearly Rs 15 crore, in which a woman from Tenali in Guntur district was cheated through promises of exceptionally high returns. In a significant breakthrough, the agency has also obtained a court order directing the return of the victim's seized crypto assets. CID officials described the investigation as the first successful breakthrough by the department in an international cryptocurrency fraud of this nature.

According to investigators, the fraudsters persuaded the woman to invest in cryptocurrency by assuring her substantial profits. Acting on their instructions, she initially transferred money from her bank accounts to 13 non-custodial cryptocurrency wallets, including one linked to Robinhood and 12 on-chain wallets. The funds were subsequently converted into cryptocurrency and transferred to two fraudulent investment platforms, Honeycombapi.org and Alibarbit.bit.

The investigation revealed that the victim carried out 27 transactions involving Bitcoin, Solana and Dogecoin, transferring cryptocurrency worth approximately $1.5 million to these platforms. The funds were later diverted through several cryptocurrency wallets and mule accounts before reaching Gate Global Corporation's exchange, based in the Cayman Islands.

The CID traced the transactions through detailed blockchain analysis and coordination with international agencies. Investigators identified 15 Bitcoin transactions across four accounts on the Gate.io exchange and managed to freeze the associated assets through legal proceedings.

With technical assistance from the Union Home Ministry's Indian Cyber Crime Coordination Centre (I4C), the investigators identified eight suspects allegedly involved in the operation. The group includes two individuals from Hyderabad, two from Maharashtra, two from China, and one each from Malaysia and Portugal. The CID has also filed a chargesheet in the case.

A major development came on October 30, 2026, when the Sixth Additional Junior Civil Judge Court in Guntur, which handles CID cases, ordered the restoration of the seized cryptocurrency to the victim. The court directed Gate Global Corporation to convert the assets held in the four frozen accounts into USDT at the prevailing market value and transfer the entire amount to a cryptocurrency wallet specified by the victim.

USDT, also known as Tether, is a stablecoin designed to maintain parity with the US dollar. The CID has urged people to remain vigilant while investing in cryptocurrencies and online platforms, warning them against schemes that promise guaranteed profits or unusually high returns.