The investigation into a financial scam began in late 2022 after victims claimed that Sayyad and his associates had promised high returns on investments. The scam operated through an Android app called the MAX App, guaranteeing returns within 150 days and offering a commission to users who brought in new investors.
The scheme falsely claimed to be linked to major cryptocurrency traders and had its headquarters in Ajman, UAE, but operated online without any physical offices in India. The group attracted investors through local events and initially paid out returns in U.S. dollars to gain credibility.
Small-scale investors and daily wage earners were lured in, and the scheme managed to collect INR 1.66 crore (about $200,000) from 52 victims. Local police received multiple complaints, leading to the case being handed over to the Economic Offences Wing of the Cyberabad police.
Sayyad is facing charges under the Indian Penal Code sections 420 for cheating and dishonestly inducing property delivery, 406 for criminal breach of trust, and 120B for being part of a criminal conspiracy. However, his accomplices are still at large.
These types of scams are common in developing countries like India, taking advantage of the public’s lack of understanding and the growing interest in cryptocurrencies.