Two Arrested in Telangana Over Interstate Crypto Ponzi and MLM Fraud
Police will forensically examine seized phones and property records to quantify losses, trace funds and identify more victims.
Overview
- Adilabad One Town police arrested two key suspects on Sunday, October 11, 2026, after complaints led to a probe of an alleged six‑member interstate fraud ring.
- The arrested men were identified as Polamarasetty Ratnaraju, 47, and Dondapati Lakshmana Rao alias Lazarus, 46, both from Andhra Pradesh.
- Investigators say the group ran a fake cryptocurrency website that sold investment packages from ₹1,000 to ₹3 lakh, promised to double funds in two years and paid up to 25% commission for recruits, a structure police describe as a Ponzi-style money circulation scheme.
- Three victims in Adilabad reported combined losses of about ₹21 lakh and the police have registered cases under IPC Sections 420 and 409 and Sections 3 and 4 of the Prize Chits and Money Circulation Schemes (Banning) Act.
- Police seized mobile phones and documents tied to properties in Zaheerabad and Rajahmundry and now plan to trace transactions to confirm the suspected scale of roughly 500 victims and about ₹10 crore in alleged losses while pursuing remaining network members.