The Delhi Police have uncovered a sophisticated IPO fraud scheme involving a cross-border cyber gang with ties to Cambodia. A coordinated crackdown resulted in the arrest of four individuals and the freezing of assets worth approximately ₹23 crore.
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The Scam and How It Operated
Police say the gang posed as legitimate investment firms and floated fake IPO offers, convincing investors to deposit funds. To enhance credibility, they claimed backing from international entities. The gang directed investors to transfer money into shell accounts. Suspicious transactions prompted police to dig deeper, uncovering links to Cambodia infrastructure and operations that masked the true flow of funds.
Raids, Arrests and Asset Seizures
After months of investigation, Delhi Police conducted simultaneous raids in multiple locations. They seized digital evidence, bank documents, and records of transactions. Four individuals were arrested, including those handling the Cambodia connection. The police also moved to freeze nearly ₹23 crore worth of accounts, property, and assets tied to the gang.
Implications and Wider Enforcement
Officials note that this case reflects how fraudsters are increasingly operating beyond national borders. The Cambodia link allowed the gang to route money, evade immediate detection, and distance themselves from the investors. Authorities are coordinating with Cambodian counterparts and other international agencies to trace money movement and recover funds.
