The Central Bureau of Investigation in India has issued a warning to crypto users amid a surge in Tamil Nadu-linked investment scams involving P2P offers and illicit USDT transactions, highlighting the risks of unregulated trading and money laundering.
The Central Bureau of Investigation has warned Indian crypto users that seemingly attractive peer-to-peer offers can carry serious legal and financial risks, particularly when payments are routed through UPI and the source of funds is unclear. In a public advisory issued on September 11, the agency said an offer to buy Tether, or USDT, at above-market rates may be tied to fraud proceeds and that a single careless trade could leave a seller exposed to suspicion.
The CBI urged people to use only exchanges registered with the Financial Intelligence Unit, avoid arranging deals through Telegram or WhatsApp, and refuse payments from third parties. It also told users to report cybercrime through the national helpline 1930 or the cybercrime portal, reflecting growing concern that fast-moving crypto transfers can be used to disguise illicit money flows.
The warning comes against the backdrop of a string of cases in Tamil Nadu involving alleged crypto-linked investment fraud. State police have said schemes run under names including FQL Investment Trading, FQL Exchange App and VG Investment Group Syndicate drew money from victims through cash, Google Pay and UPI transfers before converting part of the funds into USDT and loading them into in-app wallets. In some cases, investors later found they could not withdraw their balances after the app was shut down.
According to local and national reporting, Tamil Nadu police have now transferred six linked cases to the Economic Offences Wing as investigators examine the scale of the alleged racket. Officials have said 17 people have been arrested, 13 bank accounts frozen, and that the inquiry is being handled separately because of the possibility of wider financial links. The broader message from the CBI advisory is straightforward: in crypto, the promise of quick gains can quickly turn into exposure to fraud, frozen funds and police scrutiny.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
