India's Economic Offences Wing probes cryptocurrency MLM fraud

The Economic Offences Wing (EOW) has taken over the investigation into a multi-level marketing (MLM) and cryptocurrency trading fraud operating across the Madurai, Virudhunagar, Dindigul, and Sivaganga districts in India. The scheme, which operated under names such as ‘FQL Investment Trading’, ‘FQL Exchange App’, and ‘VG Investment Group Syndicate’, allegedly promised investors abnormally high daily returns and claimed funds could be doubled within 40 to 45 days.

Director-General of Police Mahesh Kumar Aggarwal stated that local agents collected investments through cash and digital payment methods like G-Pay and UPI. A portion of these funds was reportedly converted into Tether (USDT) and transferred to FQL/VG wallets. Victims later reported being unable to withdraw funds, facing demands for additional payments, and eventually finding the application shut down.

To date, six cases have been registered across the four affected districts. Authorities have arrested 17 accused individuals, who have been remanded in judicial custody, and have frozen 13 bank accounts linked to the operation. The transfer to the EOW follows the inter-district nature of the fraud and the large number of victims involved.