Key Highlights
- The CBI issued an advisory warning Indian crypto users about risks associated with peer-to-peer transactions.
- The agency cautioned that unusually high USDT offers may involve proceeds linked to fraud.
- Users were advised to avoid P2P deals arranged through Telegram or WhatsApp and reject third-party payments.
The Central Bureau of Investigation has issued a public advisory cautioning Indian crypto users about risks associated with peer-to-peer cryptocurrency trades involving UPI payments. The warning highlights the possibility of receiving funds linked to fraud.
The advisory released on September 11 states that an above-market rate offer for USDT may involve money obtained through fraud. It notes that a single careless trade can place a crypto seller under suspicion.
Users are advised to conduct transactions only on exchanges registered with the Financial Intelligence Unit, avoid deals arranged through Telegram or WhatsApp, and reject third-party payments. The advisory directs individuals to report cybercrime by calling 1930 or visiting cybercrime.gov.in.
Details of the advisory
The message emphasizes that peer-to-peer trades can expose participants to legal and financial risks when linked to illicit funds transferred via UPI. It stresses the importance of using regulated platforms that comply with Financial Intelligence Unit requirements. Direct deals outside registered exchanges and acceptance of payments from third parties are identified as specific practices to avoid.
The advisory does not provide additional case statistics or name individual platforms beyond the general guidance.
Tamil Nadu investigation involving UPI and USDT
The warning follows investigations into schemes that combined multi-level marketing with cryptocurrency trading and UPI payments. On August 31, 2026, the Tamil Nadu Economic Offences Wing formally took over the investigation into an alleged multi-level marketing and cryptocurrency trading operation that operated across four southern districts for approximately seven months.
Director General of Police and Head of Police Force Dr. Mahesh Kumar Aggarwal transferred six First Information Reports to the specialized wing. The cases had been registered in Madurai, Virudhunagar, Dindigul, and Sivagangai districts.
According to the official press note issued from the DGP’s office in Chennai, the operation was conducted under the names “FQL Investment Trading,” “FQL Exchange App” and “VG Investment Group Syndicate.” Local agents allegedly induced members of the public to invest in purported cryptocurrency trading by promising high daily rewards and stating that capital could double in 40 to 45 days.
Money was collected in cash and through Google Pay and Unified Payments Interface transfers. Part of the funds was allegedly converted into the dollar-pegged stablecoin Tether (USDT) and credited to in-app wallets. Investors were subsequently unable to withdraw funds or view balances once the application was switched off. Additional payments were demanded before the application was shut down.
As of the date of the transfer order, 17 accused had been arrested and remanded to judicial custody. Thirteen bank accounts linked to the accused had been frozen. The Tamil Nadu Police official handle mirrored the press release on the same day.
The transfer of the cases to the Economic Offences Wing was ordered to ensure systematic and in-depth investigation in the public interest.
The Tamil Nadu investigation provides separate context for the risks associated with UPI payments and cryptocurrency transactions in India.
Also Read: CoinShares Flags Inflation Pressure as Bitcoin Nears $80K
