Meta Fund fraud kingpin arrested in Karimnagar; Rs 30 crore fraud unearthed
Karimnagar police have arrested Varala Lokeshwar Rao, the alleged mastermind behind the Meta Fund cryptocurrency scam, which defrauded investors of up to Rs 30 crore. Rao used a fake app and digital coins to lure victims with promises of high returns.
Karimnagar: Karimnagar Police Commissionerate police have arrested the main accused in the ‘Meta Fund’ fraud case. Varala Lokeshwar Rao, who allegedly created a fake cryptocurrency application, is said to have cheated investors by promising unrealistically high returns.
Police stated that Lokeshwar Rao, with the help of several accomplices from Karimnagar, collected between Rs 25 crore and Rs 30 crore from the public. He was apprehended on Wednesday night at LMD, Alugunur, on the outskirts of Karimnagar town.
Commissioner of Police Gaush Alam, while briefing the media on Thursday, said Lokeshwar Rao, a resident of Malkajgiri, Hyderabad, had expertise in software application design and used it to develop a fake Meta Fund app and associated digital coins.
Victims were lured with promises of triple returns within three months. To convince investors, Rao offered 1,000 coins for an investment of Rs 90,000. He also arranged trips to resorts in Goa and international destinations to build trust.
Cash was collected from investors, while fake ID cards and online coins were issued. The application, however, was designed to prevent withdrawals, and Rao eventually removed the app, defrauding the investors.
Rao was assisted in the fraud by Thulasi Prakash, Bura Sridhar, Dasari Raju, Dasari Ramesh and Katla Sathish from Karimnagar, who were earlier arrested by Karimnagar Town-II police following complaints from the victims.
Authorities recovered property documents, 30 tolas of gold, mobile phones and laptops from the accomplices, while a BMW car was seized from Lokeshwar Rao. Further investigation is ongoing.
