Police in Dindigul district arrested three more people on August 29, 2026 in connection with the alleged FQL cryptocurrency investment scam, as the number of petitions from affected investors rose sharply. The three arrested were identified as Ramesh, his wife Anitha, and Vijay. At that stage, the Dindigul District Crime Branch had registered a case against 10 suspects linked to the alleged scheme.
The alleged fraud involved investment platforms known as FQL Exchange/FQL Investment Trading and later V G Investment. Police said investors were encouraged to deposit money with promises of unusually high returns, with some participants initially receiving payouts that encouraged them to invest larger amounts. Investigators allege that problems intensified after investors were moved toward V G Investment and were subsequently unable to withdraw their funds.
As complaints increased, Madurai rural police organised three special camps to receive petitions and supporting documents from investors. By August 30, police had received nearly 25,000 complaints connected with the wider scam. The petitions were to be consolidated and forwarded for further investigation, including by the Economic Offences Wing (EOW).
One investor from Melur told police that he initially invested ₹50,000 and received returns before being persuaded to invest about ₹1 lakh in another scheme, after which he alleged that he lost his money. Police were investigating the network of agents and promoters, as well as how money moved through cash, UPI transactions and cryptocurrency-linked wallets.
The scale of the case continued to expand after the initial arrests. By August 31, reports said police had received nearly 34,000 complaints, and by early September investigators said the alleged scheme had affected people across Dindigul, Madurai, Sivaganga and Virudhunagar districts. The cases were subsequently transferred to the Economic Offences Wing for a broader investigation.
The investigation remains focused on identifying the organisers, tracing investor funds, examining cryptocurrency and bank transactions, and determining the total financial loss. The people named or arrested in connection with the case are accused or suspects unless and until guilt is established by a court.