Cyberabad Police Bust Transnational Crypto Scam Impersonating Morgan Stanley, Arrest Key Suspect
(Judicial Quest News Network)
Cyberabad, February,21, 2025 – In a major breakthrough, the Cyber Crime Police Station in Cyberabad has successfully busted a transnational cybercrime syndicate that was running a sophisticated cryptocurrency investment scam while impersonating the prestigious financial institution, Morgan Stanley. The scam, conducted through Telegram and WhatsApp, targeted unsuspecting victims, resulting in substantial financial losses.
The case (FIR 4868/2024), registered in August 2024, was based on a complaint from a 47-year-old Software Engineer, who fell prey to the fraudulent crypto investment scheme. The victim was lured into the scam with promises of a 20% daily return on investments, eventually losing a staggering 55,066 USDT (equivalent to Rs. 52,31,270). USDT, a stable virtual digital asset pegged to the value of the US dollar, was the medium used by the fraudsters to exploit the victim.
The key arrest in the case was Pathi Manikanta, a 22-year-old from Y.S.R Kadapa district in Andhra Pradesh. Manikanta, who worked as a crypto and mule account trader, was found to have been in close contact with Chinese nationals and other crypto agents. Despite his arrest, several accomplices based in Haryana remain absconding, and efforts are being made to apprehend them.
How the Scam Unfolded
The victim was initially contacted through Telegram and WhatsApp, using UK-based numbers (+44). The criminals, posing as representatives of Morgan Stanley, convinced the victim to invest in a so-called crypto investment scheme that promised unrealistic returns of 20% per day. Over the course of about a month, the victim continued to invest, unknowingly funnelling his money into the scam.
The criminals utilized sophisticated techniques to launder the ill-gotten gains. Funds were moved across multiple cryptocurrency platforms, including Binance, Kucoin, and Trust Wallet, employing a layered method to hide the criminal activity. Blockchain technology and transnational links between various countries, including China, Hong Kong, and the United Kingdom, complicated the investigation.
Global Connections and Investigation
A specialized team of tech-savvy police personnel and crypto experts were assembled to investigate the case due to the complexity of the blockchain network and the transnational nature of the crime. Interrogations revealed that the main accused, Pathi Manikanta, was in regular contact with criminal groups in China via Telegram. These groups were responsible for the procurement and supply of mule bank accounts, which were used to launder the proceeds of the scam.
In addition, UDYAM Registration certificates were found on Manikanta’s phone, raising suspicions that they were being used to open mule accounts in various banks, further facilitating the money laundering process.
Recovery Efforts and Cooperation
Thanks to the intervention of the Hon’ble Court, Binance, one of the platforms used by the criminals, successfully seized the stolen assets. To expedite the recovery of funds to the victim, the police are seeking assistance from the Indian Cybercrime Coordination Centre (I4C), the Ministry of Home Affairs’ cryptocurrency investigation assistance team, and the Financial Intelligence Unit (FIU-Ind), if required.
Advisory to the Public
Authorities have issued a strong advisory to the public to remain cautious when it comes to investing in crypto schemes, especially those that promise exceptionally high returns.
- Be Sceptical of Too-Good-To-Be-True Schemes: Avoid investing in schemes that promise returns like 20% per day.
- Verify Before You Invest: Always verify the credentials of companies and individuals offering crypto investment opportunities offline.
- Risks of Cryptocurrency: Understand that cryptocurrency investments are highly risky due to their decentralized nature.
- Report Fraud: If you suspect fraud, report it immediately by calling 1930 or visiting www.cybercrime.gov.in.
- Be Cautious with Crypto Transfers: Be wary of transferring funds via private wallets as cryptocurrency transactions lack authorized regulatory oversight.
This case serves as a stark reminder of the growing threat of transnational cybercrime, especially in the rapidly expanding world of cryptocurrency. Citizens are urged to be vigilant and cautious in their online financial activities.
