Delhi Police Cracks ₹5 Crore Cyber Fraud Ring with Dubai Ties – Crypto Angle Suspected?

Delhi's cybercrime unit just dismantled a sophisticated fraud operation with international connections. The ₹5 crore ($600k+) haul suggests high-stakes digital financial crimes—potentially involving crypto transactions given the Dubai link.

While authorities haven't confirmed crypto involvement, the modus operandi fits classic Web3 scam patterns: cross-border money movement, layered transactions, and offshore coordination. Sound familiar to anyone tracking blockchain-related fraud?

The bust comes as Interpol warns about crypto's role in cybercrime. But let's be real—traditional banks still launder more in a day than all DeFi hacks combined. Maybe focus on the real whales, officers?

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.”

Gujarat Cyber Center of Excellence Cracks Down on Major Cross-Border Cybercrime Network

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…

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