Chennai,   The Tamil Nadu Police's Economic Offenses Wing (EOA) is in pursuit of four persons who were involved in a digital coin scam in which many people lost money.

Police on Sunday arrested two people after many people complained that they were cheated of huge amounts on promises heavy returns. The EOW swung into action after many people complained to the Krishnagiri District Collector that they were cheated by a digital coin trading company in Hosur.

Police registered a case against six people in the scam - Arun Kumar of Hosur, Nandakumar of Kattiganapally, D. Srinivasan of Chettiapalli, Prakash and Shankar from Perugopanapally, and Velan of Marandahally. Of this, Srinivasan and Prakash were arrested and a search is on for the other four.

According to the EOW, the company promised heavy returns to those who invest in its schemes but later the bubble burst, causing heavy losses to the investors.

The scheme promised that if a person deposit Rs 7.70 lakh in the account, they will get Rs 93,000 per week and Rs 18.60 lakh in 20 weeks. Police said that after receiving small amounts for a few weeks, the payments stopped completely leading to the investors raising a complaint.

After arresting Srinivasan and Prakash, the EOW recovered two cars, land documents, a bank passbook showing deposit of Rs 10 lakh, Rs 1.25 lakh in cash, six ATM cards, and 12.5 sovereigns of gold.

Police registered criminal cases under various sections of the IPC and Section 5 of the Tamil Nadu Protection of Interest of Depositors Act.

Sources in the EOW told IANS that they are closing in on the culprits and they would be arrested soon.

With the bursting of the digital coin scam in Krishnagiri, police are trying to ascertain whether similar cheating was taking place in other parts of the state. The EOW is also planning to conduct an awareness programme among people against the digital coin scam in Tamil Nadu.