NEW DELHI: A coordinated cybercrime crackdown across Delhi, Haryana, Punjab, and Uttarakhand has exposed a sprawling network of fraudsters who used fake law enforcement identities, cryptocurrency conversions, and e-commerce fronts to launder millions. Police say the ₹5-crore digital trail leads all the way to Dubai.
The Anatomy of a Digital Crime Syndicate
When cyber investigators in Delhi began tracing unusual e-commerce activity earlier this year, few expected it would uncover one of the most sophisticated financial fraud networks operating across northern India. The syndicate had mastered two of the most pernicious forms of online deception: the “digital arrest” scam — where victims are coerced into paying money by fake police or government officials — and investment frauds promising unrealistically high returns.
Multi-state raids conducted in Delhi, Haryana, Punjab, and Uttarakhand exposed a meticulously designed system: fake firms, mule accounts, and cryptocurrency transactions forming the backbone of the operation. Investigators say a ₹5-crore crypto trail, largely in Tether (USDT), was routed to Dubai-based handlers through a series of local intermediaries and bogus e-commerce entities created to mask financial flows.
Behind the screen, unemployed youth and students were often the first links in the chain — recruited to open “mule” bank accounts or front fake firms.
“They were promised commissions or small insurance benefits to build trust,” a senior official involved in the case said.
The Modus Operandi: Fear, Fraud, and Front Companies
The syndicate’s playbook combined psychological manipulation with digital sophistication. Victims of the digital arrest model received calls or video chats from scammers impersonating officials from agencies like the CBI, TRAI, or local cyber police. The victims were accused of serious crimes — child exploitation, money laundering, or online harassment — and told they could face immediate arrest unless they “cooperated” by transferring funds for a so-called investigation.
Parallel to this, another wing of the network ran investment fraud platforms, where websites mimicked legitimate trading or insurance companies, offering returns of up to 50% within days. In both models, once the victims transferred money, it was quickly routed through mule accounts and converted into cryptocurrency.
Three crypto wallets traced by investigators contained about 552,944 USDT, equivalent to roughly ₹5 crore. Further analysis revealed that funds were funneled through shell companies registered under fictitious names, using e-commerce fronts to simulate legitimate transactions and obscure the illicit cash flow.
Key Arrests and Investigative Breakthroughs
The Cyber Cell’s operation, led by Inspector Sandeep Singh and Inspector Ashok Kumar under ACP Anil Sharma, carried out a series of arrests across states.
Atul Sharma, from Kurukshetra, Haryana, was identified as a key syndicate operator linked to a Dubai-based handler, Sumit Garg. His arrest came after forensic analysis of e-commerce data flagged suspicious patterns. A raid in Gurugram led to the seizure of multiple mobile phones, SIM cards, laptops, cheque books, and debit/credit cards.
Rahul Manda, from Hissar, Haryana, emerged as a major player in the digital arrest racket, posing as TRAI and police officials to extort money. He was linked to a ₹30-lakh fraud case and apprehended after surveillance in Roorkee, Uttarakhand. Police recovered high-end gadgets and a Scorpio-N SUV. Manda, who has a prior conviction for culpable homicide, allegedly joined the cyber syndicate after release, specializing in mule account procurement.
Varun Anchal, alias Lucky, from Jalandhar, Punjab, was found operating a digital arrest cell that defrauded a complainant of ₹26.8 lakh by impersonating Mumbai Crime Branch officers. He had previously been arrested in similar cases in Punjab and Haryana.
Amit Kumar Singh, alias Kartik, from Saran, Bihar, a former bank employee, provided bank accounts through his contacts to facilitate money withdrawals on commission. Investigators recovered incriminating chats from his phone linking him to an investment fraud of ₹39.5 lakh.
The Supreme Court also recently cancelled the bail of Lakshay Nanda, a Ludhiana-based accused who ran fake investment platforms defrauding victims of ₹48.35 lakh — a decision credited to the Cyber Cell’s detailed evidence presentation.
The Trail Ahead: Crypto Forensics and Cross-Border Links
Authorities are now deepening their probe into the Dubai connection — believed to be the financial command center of the operation. The recovered crypto wallets are under blockchain forensic review to identify secondary wallets and exchange points. Officials say the racket relied heavily on stablecoins like USDT for quick conversion and borderless transfer of value, minimizing traditional banking exposure.
The investigation has also raised concerns over how easily domestic mule accounts can be exploited. Many were opened using fabricated KYC details from paying guests and students in urban hubs like Gurugram and Delhi, often with the assistance of insiders at financial institutions. Seized evidence includes laptops, mobile phones, debit cards, cheque books, and a Scorpio-N SUV — items that tell a story of both technological reach and material ambition.
