CHENNAI: The Avadi City Police have arrested a second accused in connection with a cyber fraud case in which a Chennai resident was allegedly cheated of Rs 1.73 crore through a fake cryptocurrency investment scheme promoted on social media.
According to police, the complainant, Yoganand, 43, of Porur, was contacted through Facebook and persuaded to invest in cryptocurrency trading through a Chinese mobile application called "Chin Chain". The fraudsters allegedly promised returns of up to three times the invested amount.
Believing the claims, the victim transferred Rs 1,73,48,330 in multiple instalments to various bank accounts provided by the accused. However, neither the promised profits nor the principal amount was returned.
Based on the complaint, the Avadi Cyber Crime Police registered a case and launched an investigation under the supervision of senior officers.
The probe revealed that Rs 13,86,440 from the cheated amount had been credited to a bank account belonging to Anbalagan, who was arrested on May 19, 2026. During interrogation, Anbalagan allegedly disclosed that he had purchased bank accounts and sold them to cyber agents operating from Uttar Pradesh and Maharashtra. He identified Madhavan as the person involved in procuring the accounts.
Police tracked down Madhavan, who had been absconding, and arrested him at Maraimalai Nagar on Friday.
Investigators said Madhavan admitted to collecting bank accounts from people in Tamil Nadu by offering commissions and selling them through cyber agents in north India to a Chinese online fraud syndicate, earning substantial commissions.
The investigation also found that bank accounts allegedly sold by Madhavan had been linked to 67 cybercrime complaints registered across India on the National Cyber Crime Reporting Portal (NCRP).
Madhavan was produced before a judicial magistrate at Poonamallee and remanded to judicial custody. He has been lodged in Puzhal Central Prison.
The Avadi Police Commissioner advised the public not to trust investment advertisements circulating on Facebook, Instagram, Telegram and other online platforms that promise unusually high returns.