Engineer Arrested in Rs 8.5 Crore AI Stock Trading Scam Involving Over 1,000 Victims

The Puducherry Cyber Crime Police have arrested a 32-year-old engineer, Ashwin Vignesh from Neelankarai, Chennai, for allegedly cheating over 1,000 people across India in a fake AI-based stock trading software scam. The total fraud is estimated at Rs 8.5 crore.

The arrest followed a complaint filed on May 15 by Jayaraj, a resident of Puducherry, who claimed he was cheated by a company called "Algo Trading." The firm had promoted an AI-powered stock trading app on social media, priced at Rs 40,000, and promised high returns. Jayaraj paid the amount in three parts but never received the software or any response.

According to senior police officers Narra Chaitanya and Bhaskaran, the scam was operated from Velachery and Nandanam in Chennai under the name Algo Trading or Alco Trading. Online complaints on the National Cyber Crime Reporting Portal revealed that more than 1,000 people had filed similar complaints.

Victims were told they could earn Rs 3,000 to Rs 6,000 daily by investing Rs 1 lakh. However, the company charged between Rs 30,000 and Rs 50,000 per person and never delivered the promised app.

A special cyber crime team raided the Velachery office on Sunday morning and arrested Ashwin Vignesh. Police seized 14 laptops, six mobile phones, a luxury car, Rs 7.3 lakh in cash, and other digital devices. Investigators found that Vignesh used multiple bank accounts—his own, his wife’s, and friends’—to move the stolen money. These accounts have now been frozen.

Vignesh, who also has an MBA, reportedly turned to fraud after leaving a low-paying job in Bengaluru. Police are now searching for his associates, including employees and people who gave their bank accounts for the scam.

Officials have urged the public to be cautious and verify any financial company’s credentials before making payments. Victims of cyber fraud can call the toll-free helpline 1930 or report the incident to local cyber police.