Bhubaneswar: The Cyber Police of Odisha Crime Branch has arrested a 39-year-old man from Andhra Pradesh in connection with an online investment scam that defrauded a Ganjam-based businessman of over Rs 6.16 crore through a fake cryptocurrency trading platform.
The accused, identified as Vedgiri Srinivasrao, hails from Srinagar area in Guntur. He was apprehended from Berhampur following a detailed investigation into the case registered on July 9, 2024, at the Cyber police station.
According to police, the fraud began on May 7, 2024, when a woman, Sanjana Srinivasan, befriended him on Facebook and introduced herself as a software developer working with IBM in Hong Kong. She quickly shifted the conversation to WhatsApp and claimed her IBM team was setting up a data centre at ZAIF, a purported digital currency exchange. The fraudster convinced the victim to open a trading account on the fake ZAIF platform and begin investing.
Between May 23 and June 24, 2024, the victim transferred Rs 6,16,37,084 to various bank accounts as directed by the scammers. Initially, the trading account displayed fluctuating profits and losses to build trust. At one point, it showed a negative balance of Rs 11,292, prompting the fraudster to urge the victim to invest more to recover the supposed losses. Encouraged by apparent gains shown on the platform, he continued depositing more. When the victim attempted to withdraw his money, the platform’s “customer care” demanded a 20% payment on the balance as a fee. He deposited an additional Rs 89,00,000, but the so-called “risk control team” repeatedly refused to release the funds under various pretexts.
After realising that it was a scam, the victim filed a complaint with the Cyber Crime police station.
The investigation team led by inspector Rajendra Bhola analysed transaction records and other digital evidence, which led them to identify Srinivasrao as one of the key perpetrators. Police seized incriminating items, including mobile phones and SIM cards, from his possession.
Following the arrest, Srinivasrao was produced before the Sub-Divisional Judicial Magistrate (SDJM) in Berhampur. He has been booked under Sections 419, 420, 465, 467, 468, 471, 120-B, and 34 of the Indian Penal Code, along with sections 66-C and 66-D of the Information Technology Act.
Last year, five persons, including a woman, from Surat and one from Ludhiana were arrested in connection with the fraud.
The Odisha Crime Branch has urged the public to exercise extreme caution with unsolicited investment offers received through social media or messaging apps. Always verify before investing to avoid falling victim to cyber frauds and to report such matters at 1930 Cyber helpline or at nearest police stations,” it added.
