How crypto scammers impersonating Morgan Stanley cheated Hyderabad techie of ₹52L

Hyderabad: Cyberabad Cyber Crime Police have uncovered a transnational cryptocurrency investment scam operating through Telegram and WhatsApp. The case was registered in August 2024 following a complaint from a 47-year-old software engineer who lost 55,066 USDT (₹52,31,270) in the fraudulent scheme.

The victim was contacted through UK-based WhatsApp numbers (+44) and promised 20% daily returns on investments. Over a month, the scammers, impersonating Morgan Stanley, gained his trust and convinced him to invest repeatedly.

Arrest and Investigation

Police arrested Pathi Manikanta (22) from Y.S.R Kadapa, Andhra Pradesh, a crypto and mule account trader with links to Chinese agents and other crypto traders. His associates from Haryana remain absconding, and efforts are underway to track them down.

Investigations revealed that the accused was in direct contact with Chinese criminal groups via Telegram. These groups were involved in buying and supplying mule bank accounts, which were used for laundering stolen funds. The police also recovered UDYAM registration certificates from the accused’s phone, suspected to have been used for opening mule accounts.

International Money Laundering Network

The scammers used sophisticated layering techniques across multiple crypto platforms, including Binance, KuCoin, and Trust Wallet, to hide and transfer illicit funds. Given the transnational nature of the crime, a team of tech-savvy police personnel and cryptocurrency experts was formed to investigate the movement of funds.

Seizure and Recovery of Funds

With court approval, Binance has seized the stolen cryptocurrency, and authorities are working to recover the funds for the victim. The police are also coordinating with:

• Indian Cybercrime Coordination Centre (I4C)

• MHA’s Cryptocurrency Investigation Assistance Team

• Financial Intelligence Unit - India (FIU-Ind)

Further assistance from these agencies will be sought if required to expedite the process.

Advisory for Citizens

Authorities have issued a public advisory urging citizens to remain cautious:

1. Beware of investment schemes promising unrealistically high returns, such as 20% per day.

2. Avoid Telegram and WhatsApp-based investment offers unless the company’s credentials are verified through offline sources.

3. Understand the risks of cryptocurrency, as its decentralized nature makes it vulnerable to fraud.

4. Report cyber fraud immediately via 1930 or www.cybercrime.gov.in.

5. Be cautious when using private cryptocurrency wallets, as these transactions lack regulatory oversight.

The Cyberabad Police has warned that fraudsters are increasingly using social media platforms to trap investors, and citizens should thoroughly verify any investment scheme before transferring funds.

The investigation is ongoing, with efforts focused on apprehending the absconding suspects and tracing further financial transactions.