Hyderabad: Police arrested the operator of a cryptocurrency trading app in Hyderabad for duping investors, exposing how fraudulent schemes are spreading across Telangana. The accused, Himanshu, ran the app “NextBit” and lured people with promises of quick profits.
Arrest and Complaints
Medipally police under Rachakonda commissionerate registered complaints and tracked Himanshu to a city hotel where he was promoting the app. Rival app operators reportedly accompanied victims to the police station and even remained present during the arrest, pointing to deep business rivalries in the sector.
Victims and Modus Operandi
According to the police remand report, nearly 400 investors lost about ₹19 crore in the scheme. Victims were placed in small clusters of five to ten and persuaded to invest with claims that their money was backed by land and cryptocurrency credits. In several cases, land worth less than ₹20 lakh was falsely declared as ₹50 lakh and shown as collateral.
Investors also received digital “dollars” in the app, creating an illusion of steady returns. Once enough money was collected, operators disappeared, with some reportedly fleeing abroad.
Resemblance to Past Frauds
Officials said the scheme resembled earlier fraudulent practices such as lotteries, betting apps, and online gaming, which preyed on the desire for “easy money.” They clarified that while crypto trading is legal, it carries high risks and requires expertise to make profits.
Role of Rivalry
Reports suggested that business rivalry influenced the arrest. Competing app operators, upset with NextBit’s rising popularity, pushed complaints forward. Despite several apps running similar schemes, police have not taken action against other operators yet.
Karimnagar Region: A Hotspot
The undivided Karimnagar region has become a hub for such scams. Districts like Rajanna Sircilla, Jagtial, and Karimnagar recorded the highest number of victims. Previous scams such as GBR Crypto (₹95 crore) and Meta (₹100 crore) also emerged from these areas.
Police Advisory
Officials said unregulated apps continue to mushroom in the absence of market checks. Investigations are ongoing, and police urged the public to avoid investing in unverified digital platforms.