The Indian police have arrested nine members of a criminal syndicate for illegally buying and selling bank accounts used to facilitate several cyber frauds. According to authorities, the criminals used the bank accounts to route illegal funds, moving them through hawala channels and digital asset transactions.
According to the Indian police, the criminal syndicate has been able to launder funds in excess of Rs. 5.24 crore (approximately $578,724), which authorities were able to trace to a single account. Indian police noted that their attention was drawn to the syndicate, which operated out of a hotel in Dwarka. After carrying out due diligence and acting on a sure tip-off, they carried out a raid on the location, arresting four individuals connected to the criminal network.
Indian police arrest nine suspects over illegal crypto activities
According to the police, the four suspects arrested in the first raid were identified as Sultan Salim Shaikh, Sayed Ahmad Choudhary, Satish Kumar, and Tushar Maliya. Upon interrogation, the accused disclosed that they were a large-scale fraud syndicate that carried out fraudulent activities on the instructions of a top brass in their network. The suspects claimed they usually change locations to evade police raids and detection.
During the interrogation, Shaikh revealed that he opened a current account with a bank some months ago at the instruction given by another handler, who promised him a 25% commission from any transaction that was carried out using the bank account. He also confessed to knowing that the bank account was being used for criminal activities, noting that he was given a mobile phone as part of the arrangement with the handler of the account.
According to DCP (IFSO) Vinit Kumar, after analysis was carried out on the bank account, it showed that the suspect opened it with an initial deposit of Rs. 25,421 and has been using it for fraudulent activities since then. Between November 21 and 26, more than 10,423 transactions were carried out using the account, with the total transactions worth Rs. 5.24 crore. The police carried out subsequent raids, which led to the arrest of five more suspects: Shivam, Parbhu Dayal, Suresh Kumar Kumawat, Tarun Sharma, and Sunil.
Authorities warn perpetrators to desist
The authorities claimed that Kumawat emerged as an important link between the account suppliers and the leaders of the syndicate. He was in charge of laundering illegal proceeds through hawala channels. The money trail also involved some transactions where cash was withdrawn and paid to peer-to-peer operators who sent the criminals digital assets, which were always in the form of Tether’s USDT. The criminals then moved the USDT to those dictating the play at the top.
The police claimed that investigations remain ongoing as they intend to get to the root of the issue. They have also issued a warning to criminals still at large, urging them to desist from their acts before the long arm of the law catches up with them. The Indian police have also issued several warnings to residents to be careful, as these criminals are coming up with more sophisticated means to target them and steal their funds.
The rate of crypto-related crimes in India is currently on the rise, with authorities making moves to apprehend as many as possible. In a similar case, a transporter claimed he was scammed of Rs. 16 lakh after he was introduced to a fake crypto investment operated through a fake website. The victim was contacted on WhatsApp by a woman who promised to introduce him to a high-paying investment scheme. After subsequent chats, he sent the funds, and after a while, he discovered that he was unable to withdraw his funds.
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