Delhi Police Bust Cyber Fraud Rings, Trace ₹5 Crore USDT Trail to Dubai

• Delhi Police arrests four in cyber fraud operations targeting investment scams and digital arrests.

• Investigators traced ₹5 crore in cryptocurrency transactions routed through fake companies and mule accounts to Dubai handlers.

• Parallel Gujarat CID probe revealed a ₹200-crore racket funneling funds to Pakistan via USDT, involving 100 mule accounts and 386 cases.

Delhi Police busts cyber fraud syndicates with ₹5-crore crypto trail to Dubai. Discover arrests, fake firms, and cross-border laundering. Stay informed on India’s fight against digital scams—read more now!

What is the Delhi Police’s latest bust on cryptocurrency-linked cyber frauds?

Delhi Police cryptocurrency fraud bust involves dismantling organized syndicates that defrauded victims through investment scams and digital arrests, with funds laundered via cryptocurrency to Dubai. In coordinated raids across multiple states, authorities arrested four key individuals and seized evidence of fake firms and mule accounts used to obscure illicit transactions. This operation highlights the growing role of digital currencies in cross-border financial crimes in India.

How do Dubai-based handlers facilitate these crypto laundering schemes?

Dubai-based handlers direct operations remotely, using vulnerable individuals to open mule accounts that receive scam proceeds before converting them into cryptocurrency like Bitcoin or stablecoins for transfer. According to Deputy Commissioner of Police Aditya Gautam, these networks exploit e-commerce fronts and forged documents to layer transactions, making tracing difficult. Technical analysis by police teams revealed wallets holding ₹5 crore, with funds moved through multiple digital platforms. Experts from the Indian Cyber Crime Coordination Centre note that such schemes often involve commissions of 0.1-1% per transaction, incentivizing local accomplices. In one case, Atul Sharma from Haryana was arrested for managing these accounts under handler Sumit Garg’s instructions, leading to the recovery of devices and documents in Gurugram.

Frequently Asked Questions

What role do mule accounts play in India’s cryptocurrency frauds?

Mule accounts are bank accounts opened by individuals, often financially vulnerable, to receive and transfer scam proceeds before converting them to cryptocurrency. In the Delhi Police operations, nearly 100 such accounts were identified across 386 cases, facilitating laundering to foreign entities. Authorities emphasize educating the public on the legal risks, as unwitting participants face charges under anti-money laundering laws.

How has Gujarat CID tackled cross-border crypto rackets linked to Pakistan?

Gujarat CID’s investigation uncovered a ₹200-crore network laundering funds through USDT to Pakistan-based wallets, arresting suspects like Chetan Gangani who transferred ₹10 crore via BitGet. The operation spanned districts like Surat and Morbi, tracing seven layers of transactions from Indian banks to crypto exchanges. This natural progression of events shows improved forensic tracking by state police, reducing the anonymity of digital assets in crimes.

Key Takeaways

• Multi-state coordination is key: Delhi Police raids in four states exposed interconnected fraud networks, leading to arrests and seizures that disrupted operations.
• Cryptocurrency trails are traceable: With ₹5 crore linked to Dubai and ₹200 crore to Pakistan, advanced analytics help follow funds from mule accounts to wallets.
• Public awareness prevents victimization: Victims lost millions in scams; reporting suspicious calls and verifying investments can protect against digital arrests and fake schemes.

Conclusion

The Delhi Police cryptocurrency fraud bust and Gujarat CID’s parallel efforts against cross-border crypto laundering demonstrate India’s intensifying battle against cyber-enabled financial crimes. By targeting fake firms, mule accounts, and Dubai-Pakistan connections, authorities have recovered evidence worth crores and arrested repeat offenders like Rahul Manda and Varun Anchal. As these syndicates evolve, enhanced regulations on digital assets and international cooperation will be crucial. Stay vigilant against impersonation tactics and report fraud to safeguard your finances in this digital age.

DCP Gautam said raids in Delhi and nearby states targeted cyber frauds using fake firms and mule accounts.

Key Highlights

• Delhi Police in India busted multiple cyber fraud syndicates, arresting four men in major investment and digital arrest scams.
• A ₹5-crore cryptocurrency trail linked to Dubai was uncovered, routed through fake firms, e-commerce fronts, and mule accounts.
• The accused used vulnerable individuals’ accounts for money laundering under Dubai handlers.

In a major operation against organized cybercrime networks, the Delhi Police have dismantled multiple online fraud syndicates operating across several Indian states, tracing a ₹5-crore cryptocurrency trail that leads to Dubai-based handlers.

The large-scale crackdown, conducted in India’s capital, New Delhi, and neighboring states, has resulted in the arrest of four men involved in digital arrest and investment scam rackets that defrauded hundreds of victims across the country.

The arrests come even as a separate probe by the Crime Investigation Department (CID) of the Indian state Gujarat uncovered a massive ₹200-crore cybercrime racket funnelling funds to Pakistan through cryptocurrency, revealing the deepening nexus between digital fraud and cross-border financial crime

Multi-state raids expose fake firms and crypto laundering 

According to Deputy Commissioner of Police (Crime) Aditya Gautam, the crackdown is part of an ongoing drive against cyber-enabled financial frauds targeting people through intimidation, impersonation, and false investment schemes.

“The crackdown was part of an ongoing drive against organized cyber-enabled financial crimes that target victims through impersonation, intimidation, and false investment schemes,” said DCP Gautam.

Police teams carried out simultaneous raids in Delhi, Haryana, Punjab, and Uttarakhand, seizing mobile phones, SIM cards, laptops, debit and credit cards, cheque books, and other incriminating materials. Investigators also discovered fake companies, mule accounts, and e-commerce fronts that were used to channel and conceal illicit proceeds.

Key arrests and the Dubai connection

The first accused, Atul Sharma, a resident of Haryana, was arrested for orchestrating an investment scam under the direction of a Dubai-based handler identified as Sumit Garg.

A detailed technical analysis of suspicious e-commerce transactions led to Sharma’s arrest in Gurugram, where police recovered multiple electronic devices, bank cards, and forged documents.

According to the investigation, Sharma manipulated financially weak individuals—often those staying in paying guest accommodations—into opening current accounts under the guise of improving their credit scores or helping them obtain insurance. These accounts were later used to launder money extracted from victims of online investment scams.

Police have so far traced cryptocurrency transactions worth nearly ₹5 crore across three digital wallets linked to the Dubai syndicate.

Digital arrest racket and repeat offenders

In another operation, Rahul Manda, a resident of Haryana, was apprehended from Roorkee in Uttarakhand for his role in a digital arrest racket—a scam where fraudsters pose as police or telecom regulatory officials to intimidate victims into transferring money.

Manda was linked to a case in which a complainant was defrauded of ₹30 lakh. He was found in possession of multiple high-end gadgets and has a prior criminal record, including a five-year jail term for similar offenses.

Another accused, Varun Anchal from Punjab, was arrested for managing mule accounts and facilitating fund transfers to foreign handlers. Anchal was involved in a separate digital arrest scam where a victim was cheated of ₹26.8 lakh by fraudsters impersonating Mumbai Crime Branch officers. He, too, had earlier been arrested in cyber fraud cases across Punjab and Haryana.

The fourth accused, Amit Kumar Singh from Bihar, a former bank employee, supplied bank accounts to scam operators for commission. His phone contained incriminating chat records and evidence showing his involvement in laundering activities. He is linked to a ₹39.5-lakh investment fraud case. Police said Amit frequently changed employers to avoid detection.

Further investigation is underway to identify the full network of accomplices and the Dubai-based masterminds.

Gujarat CID uncovers ₹200-crore crypto racket 

In a parallel breakthrough, the CID Crime of the Indian state Gujarat recently uncovered a sprawling ₹200-crore cybercrime racket that laundered money to Pakistan-based cryptocurrency wallets through layers of mule accounts and digital assets.

The latest arrest in the case is Chetan Gangani, a Surat resident accused of helping transfer ₹10 crore through his BitGet crypto account to a Pakistan-linked wallet. Investigators found that Gangani worked with a larger network spanning Surat, Morbi, Surendranagar, and Amreli districts.

Over four months, Gangani allegedly converted illegal funds into USDT (Tether), a cryptocurrency pegged to the US dollar, before transferring them to Pakistan. Police sources confirmed that the Pakistan wallet held ₹29 crore, of which ₹10 crore originated from Gujarat. Gangani reportedly earned a 0.10% commission on every transaction.

386 cases, 100 mule accounts, and a cross-border network

Officials said that six other individuals arrested earlier had provided nearly 100 mule bank accounts used in 386 cybercrime cases across India, including investment scams, online job frauds, and digital arrest cases.

A mule account, police explained, is a bank account used—sometimes unknowingly by ordinary individuals—to move or conceal illicit funds. In many cases, the account holders participate willingly for small commissions.

Announcing the breakthrough on social media platform X, Gujarat Deputy Chief Minister Harsh Sanghavi, who also handles the Home portfolio, said: “In a major breakthrough, the Gujarat Cyber Crime Center of Excellence has dismantled a large-scale ‘Mule Account’ network operating across multiple districts, Morbi, Surendranagar, Surat, and Savarkundla, with direct financial links traced to Pakistan.”

He added that investigators “meticulously tracked the money trail through seven layers, from initial Indian accounts to cryptocurrency (USDT) transactions.” The probe revealed that ₹10 crore was transferred to a Pakistani Binance USDT account, which had cumulatively received over ₹25 crore from Indian sources.

Growing trend of crypto-linked cybercrime

Both the Delhi Police and Gujarat CID operations underscore a growing trend: the increasing use of cryptocurrency to mask illegal financial transactions and launder funds across borders.

Officials warn that cybercriminals are becoming more sophisticated, using fake firms, mule networks, and crypto wallets to obscure the trail of stolen money. Experts say the incidents highlight the urgent need for tighter cryptocurrency regulations, international coordination, and public awareness campaigns to combat the rapidly evolving landscape of cyber-enabled financial crimes in India.

Also Read: China’s Cryptoqueen to be Jailed Over £5bn Bitcoin Fraud Scheme

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