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.
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