Adilabad police arrest two suspects in alleged cryptocurrency Ponzi scheme

Adilabad police arrested two suspects on October 11 in an alleged cryptocurrency Ponzi scheme. Police estimate that around 500 people may have been affected, with alleged losses of about ₹10 crore (100 million rupees).

District Superintendent of Police Akhil Mahajan identified the arrested men as Polamarasetty Ratnaraju, 47, and Dondapati Lakshmana Rao, also known as Lazarus, 46. Both are from Andhra Pradesh. Investigators link them to a 6-member group operating across Telangana and Andhra Pradesh.

Police allege that a website and multi-level marketing network promised to double investments within 2 years. Officers seized 2 mobile phones and documents relating to 2 properties allegedly connected to the suspects.

The case followed a complaint from a Ruyyadi villager who invested ₹7.50 lakh (750,000 rupees) in 2023 and said repeated requests for repayment were unsuccessful. Two other district residents reported losses of ₹7.50 lakh and ₹6.21 lakh (750,000 and 621,000 rupees).

Police registered the case under Sections 420 and 409 of the Indian Penal Code and Sections 3 and 4 of the Prize Chits and Money Circulation Schemes (Banning) Act. The investigation continues, and the estimates of losses and affected investors remain preliminary.