Investors lose Rs 14 crore in forex-cypto scam; EOW probes network

New Delhi: At least 27 people have alleged they were duped of nearly Rs 14 crore in an online investment scheme that promised steady returns through “advanced” trading technology, police said.

According to complainants, most victims were from middle-class families with limited understanding of forex trading, cryptocurrency markets or digital investment systems. Many invested life savings, while some borrowed money after being assured of consistent monthly returns.

Investigators said the scheme was promoted through webinars, seminars, social media campaigns, WhatsApp groups, online meetings and personal referrals. Prospective investors were approached by acquaintances and existing participants and invited to presentations portraying the model as a sophisticated platform operating in international forex and cryptocurrency markets.

“The promoters claimed the platform was powered by artificial intelligence, automated trading algorithms and financial infrastructure capable of generating stable monthly returns,” said a Shahdara resident among the complainants.

Another complainant said he invested Rs 21.9 lakh in the scheme, initially seeing profits reflected on the platform. However, the system later stopped functioning, and his funds remain blocked. Similarly, a woman said she invested around Rs 8.5 lakh, including personal savings and borrowed money, after being assured of monthly returns. The platform subsequently stopped releasing payments, leaving her investment inaccessible.

To build credibility, investors were given access to digital dashboards showing investment balances and purported profits. The figures showed steady gains, creating the impression of genuine trading activity and prompting higher investments.

Victims alleged they were asked to transfer funds through bank accounts, digital wallets and cryptocurrency transactions. They were later persuaded to increase contributions and bring in friends, relatives and acquaintances, expanding the investor network.

Problems surfaced when investors attempted withdrawals. Complainants said the operators cited technical upgrades, regulatory audits and system changes to explain repeated delays. During this period, investor accounts were allegedly shifted across platforms, with assurances that funds were safe.

In several cases, investors were encouraged to convert balances into newly launched cryptocurrency tokens projected as high-value assets.

Withdrawals were eventually halted, while dashboards continued to display notional balances, preventing recovery of funds. Complainants alleged the figures did not reflect any real trading activity and that the money was controlled by the operators.

Based on the complaints, Delhi Police’s Economic Offences Wing has registered a case and launched an investigation. A Dubai-based man has been named as a suspect. Police are examining the money trail, the role of promoters and the operations of the platforms involved.

Meanwhile, the EOW registered another case alleging investors were duped by an investment platform that promised returns of up to 2.5 times the investment but later stopped payouts and became inaccessible. Complainants claimed the company illegally collected Rs 800–1,000 crore, pointing to a large-scale financial fraud.