New Delhi: Delhi Police have dismantled a multi-state cybercrime syndicate allegedly linked to foreign handlers operating from China. A key operative has been arrested, while others involved in the network remain on the police radar. Investigators say the gang used layered money-mule accounts, shell firms and cryptocurrency channels to defraud a senior citizen through a fake digital investment scheme.
Complaint Sparks Probe Into a Deep Investment Fraud Chain
The case began when a 61-year-old complainant approached the police after realising that the online investment opportunity he had put money into was fraudulent. Early checks by investigators showed that the victim’s funds had moved through multiple mule accounts and beneficiary layers, ultimately landing in the bank account of a shell private limited firm set up solely for laundering.
Two key individuals associated with this firm surfaced during the initial probe — Shivam Singh, a resident of Faizabad (Uttar Pradesh), and Lakshya, a Delhi-based operative. Lakshya had already been arrested on 19 November. During interrogation, he reportedly admitted that he was tasked with opening bank accounts, acquiring SIM cards, and procuring identity kits for the syndicate. In return, he received a fixed monthly payout for handing over account kits, SIM cards and KYC documents to the network’s handlers.
The arrest of another accused, Shubham, led to raids across various parts of Delhi–NCR. Police recovered a laptop, two mobile phones, five cheque books, six debit cards and several documents linked to digital transactions. During questioning, Shubham claimed that the racket operated with a “deep financial structure” involving shell companies, mule accounts, crypto wallets and offshore financiers directing the flow of funds.
Cryptocurrency Route Used to Move Money Abroad
According to police, the syndicate not only created bogus enterprises and mule accounts but also relied on USDT-based crypto wallets to obscure the trail of the stolen money. After passing through multiple domestic accounts, the proceeds were allegedly converted into stablecoin (USDT) and transferred to wallets controlled by foreign handlers.
This hybrid chain — mule accounts + shell firms + crypto conversion — allowed the gang to move money overseas within minutes, bypassing traditional financial monitoring systems. Investigators believe the cross-border movement of funds was orchestrated to evade compliance checks, tax scrutiny and tracing by law-enforcement agencies.
How the Network Operated — Shell Firms, SIM Identities and Virtual Wallets
Delhi Police say the group fabricated multiple shell companies using forged addresses and bogus incorporation details. These entities existed only on paper and were used to open current accounts through which large amounts of money were routed.
Mule bank accounts were created using low-cost identity kits purchased from individuals recruited through online groups and messaging apps. The syndicate also collected SIM cards, virtual mobile numbers and e-wallet credentials, creating a vast digital ecosystem through which fraudulent transactions could be executed without attracting immediate attention.
Several accounts examined by investigators showed little or no genuine business activity, yet had witnessed substantial credit inflows and rapid withdrawals — a pattern consistent with laundering operations.
During questioning, one accused admitted that he was paid a fixed monthly fee simply to provide bank accounts and digital IDs to the syndicate. Police say several victims attempted to trace their funds, but the use of high-velocity money-mule transfers, crypto wallets and foreign controllers made recovery difficult.
Arrests and Next Steps — Police Prepare to Extract the Network at Its Roots
So far, Lakshya and Shubham have been arrested. Investigators are now analysing banking logs, wallet trails and suspected foreign-linked transactions to identify more operatives. Officials say the crackdown is at an initial stage and several more arrests and disclosures are likely.
The Special Cell has issued an advisory urging citizens — particularly senior citizens — to avoid quick-profit investment schemes, crypto-based return promises or unsolicited online earning platforms, which remain hotspots for cyber fraud.
A Disturbing Pattern — International Cyber Gangs Expanding Networks in India
The case highlights emerging trends in cybercrime, where international linkages, shell corporations, mule accounts and crypto channels converge to create sophisticated fraud networks. The ability to rapidly transfer stolen funds abroad through decentralised digital assets poses a major challenge for law-enforcement agencies.
Police officials say intensified inter-state coordination and deeper forensic audits of bank accounts and crypto wallets will be critical in uprooting such multi-layered syndicates in the coming months.
