Hyderabad: Cyberabad Police dismantled a massive financial fraud network that cheated more than 3,100 investors across several states of over ₹850 crore through fake AI-driven stock trading platforms.
The racket, active between 2022 and 2025, lured middle-class families, retirees and salaried professionals with promises of 7 percent monthly returns based on so-called “AI stock predictions.” Police said the accused built an elaborate façade of legitimacy using shell companies, fake SEBI and stock exchange registrations, premium office spaces and investment seminars in Andhra Pradesh and Telangana.
On August 19, police arrested Gaddam Venugopal, Director of AV Solutions and Srinivas Analytical, and Shreyas Paul of Ballari, Karnataka. Investigators found that they were aided by over 20 consultants, developers and administrators operating across multiple cities.
The group floated shell companies including IIT Capital Technologies, AV Solutions, Srinivas Analytics, and Trade Bulls Technology, and duped investors through fraudulent websites such as www.iitstockmarket.com, www.myshareprofit.com, www.tradeonnumbers.com, and www.smalgo.com. These sites carried bogus credentials and certifications to appear credible.
Cyberabad Police busts AI stock trading fraud
According to police, the network defrauded 3,164 investors of ₹850.59 crore, of which ₹618.23 crore was recycled as part-returns to maintain credibility, while ₹232.36 crore was retained by the accused.
A detailed breakdown showed AV Solutions, run by Venugopal, cheated 2,388 victims of ₹441.52 crore, retaining ₹104.36 crore. IIT Capital Technologies, led by Venkata Rao, defrauded 776 investors of ₹409.07 crore, keeping ₹128 crore.
Investigators seized a Toyota Fortuner, a BMW, 11 laptops, three phones, backend trading access, a database of 3,164 investors, cheque books, promissory notes worth ₹3.37 crore, benami property documents and flats at Manikonda and Happy Homes.
Police said many victims lost retirement savings and children’s education funds, forcing some into debt and bankruptcy. Several continue to face severe psychological distress.
The racket also laundered funds through 21 mule bank accounts in ICICI, HDFC, Axis, Kotak Mahindra and IndusInd, with part of the proceeds routed through Dubai channels.
Cyberabad Police advised the public to be wary of investment schemes promising more than 2–3 percent monthly returns and warned against transferring money into personal accounts. Citizens were urged to verify SEBI and MCA registrations online and physically inspect office premises before investing.
Emergency contacts:
Cyber Crime Helpline: 1930
EOW Cyberabad: eow-cyberabad@tspolice.gov.in
SEBI Complaints: scores.sebi.gov.in
