Hyderabad: The Economic Offences Wing of Cyberabad police brought B.N. Satish, CEO of XITO Consultancy Services Pvt. Ltd, a Bengaluru-based firm, to the city for his alleged involvement in a racket that cheated Rs two crore from around 200 people in Telangana and Andhra Pradesh. He was arrested by Cyberabad police at his residence in Bengaluru on February 1 and brought to the city on a transit warrant. He had an office on the 11th floor of Manjeera Trinity, KPHB here.
Satish, 35, enticed depositors with promises of substantial returns on investments in ‘X-Coins’ of digital currency. The company created a deceptive website and collected funds through GoFlyx, which marketed the ‘X-Coins’.
According to ACP Hussaini Naidu, Satish and Avalakondappa Venkata Chalapathi established the company in 2015 in Bengaluru. Subsequently, they established a branch office at KPHB here, collaborating with others known as Gadiraju Rajendra Prasad Raju, Guru Prasad, Pasam Venkat Prasad and Jyothi.
The scheme targeted innocent depositors, promising a 1:1 return for 3 months and 1:4 returns for a year, with a 3-month lock-in period. The depositors were to receive ‘X-Coins’ equivalent to their investment, the value of which fluctuated daily.
The accused successfully lured around 150 to 200 victims from Telangana and Andhra Pradesh, accumulating about Rs two crore, the police official said and added that when depositors sought refunds, they failed to respond and closed their office.
T. Rajendra Prasad, a victim, said that he deposited Rs 6,50,000 in various installments and the company did not respond when he asked for refund. The case is under investigation.
The police official urged people not to fall into trap of similar schemes or offers and inform the nearest police station.