Man held from Andhra for duping Odisha bizman of Rs 6 cr in crypto fraud

Bhubaneswar: Odisha crime branch on Monday arrested 39-year-old Vedgiri Srinivas Rao from Guntur, Andhra Pradesh, for allegedly defrauding a Berhampur-based businessman of nearly Rs 6 crore through a fraudulent cryptocurrency trading scheme.

According to police, Rao and his accomplices allegedly created a fake cryptocurrency trading platform to lure unsuspecting investors. The case came to light after the businessman lodged a complaint with the cyber cell on July 9, 2024.


He alleged that in May 2024, he was contacted on a social media platform by a woman claiming to be a Hong Kong-based software developer.

“The woman enticed the victim to participate in digital currency trading, promising 200% returns within days. She later added him to a WhatsApp group where other fraudsters provided investment instructions,” a senior crime branch officer said.

Between May 23 and June 24, 2024, the businessman transferred Rs 6,16,37,084 to multiple accounts provided by the perpetrators. However, when he tried to withdraw his supposed profits, the accused began making excuses and eventually stopped responding.

“We found substantial amounts credited to Rao’s account. Six of his associates from Surat in Gujarat and Ludhiana in Punjab had been arrested last year,” the crime branch officer said.

Crime branch officers revealed that the fraudsters had created a fake e-wallet displaying false and inflated profits. “The victim was unable to access his funds. When he tried to withdraw, the perpetrators encouraged him to wait and even solicited additional investments,” the officer added.

At one point, the businessman’s trading account showed a negative balance of US$ 11,292. When he questioned the woman, she advised him to invest more to recover the losses. Though his account later reflected significant profits, the scammers demanded further payments.

When he sought withdrawal, a customer care executive from the platform asked him to pay 20% of the balance amount. Upon his insistence on a refund, the fraudsters demanded an additional Rs 89 lakh and blocked his access. Soon after, they changed their contact numbers and closed the WhatsApp group. Realising the deception, the victim filed an FIR.