Chennai Economic Offences Wing Files Case Against Cryptocurrency Firm in Major Investor Fraud
The Economic Offences Wing (EOW) in Chennai has officially registered a criminal case against a local cryptocurrency firm and its director for allegedly defrauding investors of approximately Rs 30 crore. The case centers on Tycoon Fintech, operating as TFT Block Chain Services Pvt Ltd, which is accused of luring investors with unrealistic promises of high monthly returns.
False Promises and Disappearing Acts
According to investor complaints, the company aggressively marketed cryptocurrency investments with guarantees of generating steady monthly returns between 15% and 20%. These promises proved entirely fraudulent as the company subsequently failed to pay both the promised monthly interest and the principal investment amounts to numerous investors.
The scheme unraveled when investors filed a formal complaint with the Reserve Bank of India in 2023. When the RBI issued an official notice to the company, both the firm and its directors reportedly went into hiding, refusing to respond to regulatory inquiries or investor demands.
Regulatory Investigation Uncovers Systemic Failures
The RBI subsequently filed a complaint with the Registrar of Companies, triggering a comprehensive investigation. Multiple regulatory notices were issued, but neither the company nor its directors took any corrective action or responded to official communications.
The probe revealed several serious violations, including the illegal acceptance of large-scale investments without proper regulatory approvals and a complete failure to maintain legally required financial records. The Department of Company Affairs has already imposed financial penalties on the company for these regulatory breaches.
Legal Action and Victim Support
The Economic Offences Wing has now registered a formal case against the company and its director, identified as John Charles Ratchagan. This legal action represents a significant escalation in efforts to hold the perpetrators accountable and potentially recover lost funds for victims.
Authorities have announced that additional victims of the cryptocurrency investment scam can submit their complaints directly to the Economic Offences Wing at the Police Training College Campus in Ashok Nagar, Chennai-83. This centralized complaint collection aims to document the full scope of the fraud and identify all affected investors.
The case highlights growing concerns about cryptocurrency-related investment scams in India, particularly those making unrealistic return promises. Regulatory authorities are increasingly scrutinizing such operations, with the Chennai EOW case serving as a warning to both investors and potentially fraudulent operators in the digital currency space.
