India Cracks Down: 10 Arrested in Major Chinese Crypto Money-Laundering Scandal

Indian authorities just dropped the hammer on a cross-border crypto scheme—and the numbers don't lie.

10 suspects in custody. One international laundering operation exposed. Zero chill from regulators.

Here's the breakdown:

The Bust: Delhi's cybercrime unit traced suspicious blockchain transactions back to Chinese operatives—classic 'wash trading' meets old-school hawala networks.

The Backstory: Sources say the ring moved millions through privacy coins and OTC desks before someone got greedy. (Funny how that always tanks criminal enterprises faster than a leveraged shitcoin.)

The Big Picture: Another reminder that crypto's transparency cuts both ways—your 'untraceable' transaction leaves brighter breadcrumbs than a Wall Street intern expensing strip clubs.

Indian police apprehend suspects for laundering criminal proceeds

The officials stated that the suspects were part of a big network of criminals that aided the operations of the Chinese gang in the country. While there are indications that the network is spread globally, the Indian police were only focused on smashing their network in the country. Reports claim that the Chinese gang carried out different sorts of online scams, routing the illegal funds through multiple bank accounts.

The authorities mentioned that these arrested individuals worked for the gang, using their local bank accounts to receive the funds. After receiving the funds, the suspects then uses it to purchase digital assets and transfer them back to the criminal gang after deducting their commission. According to investigations, over the last two months, the arrested suspects had made payments of nearly Rs. 75 to 80 lakh (approximately $86k to $92k).

Among the ten suspects taken into custody by the Indian police, two have agreed to help the authorities by becoming government witnesses. The remaining individuals have been booked and sent to judicial custody pending trial. The authorities said that all of them were involved in helping the Chinese gang coordinate things on the ground. They carried out activities like acquiring bank accounts, managing digital transactions, and making profits via commission on each transfer.

This case highlights a growing trend in the country, with authorities initiating an arrest of two men, including an industrialist from Hyderabad last week. According to authorities, the men were receiving funds said to be proceeds of scams in their bank accounts. Investigations discovered that the funds were sent to a casino in Sri Lanka which is currently under investigation for cyber fraud. The police approached the victim after a tip-off from their counterpart. The victim had already made payments to the Indian accounts provided by the criminals.

Authorities have warned residents in the country to be watchful of criminal elements like these. The authorities stated that those trying to steal people’s hard-earned money often come with great investment opportunities that are always too good to be true. They offer very high amounts of returns on investment, pushing victims to take advantage of it in a short while. While the first few investment opportunities are always impressive, they use them to deceive their victims into making more investments, which are then stolen and laundered.

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