DELHI: The Delhi Police Crime Branch has arrested two men for allegedly providing fake company bank accounts used to deposit proceeds from cyber fraud and later converting the money into cryptocurrency using a China-controlled mobile application. Police said the arrests have exposed an organised racket operating across states with links to foreign handlers.
Victim lost ₹33.10 lakh in Fake Stock Investment Scheme
According to Deputy Commissioner of Police (Crime Branch) Aditya Gautam, the case began after an elderly man lodged an online FIR claiming he was cheated of ₹33.10 lakh. The victim was allegedly duped under the pretext of earning profits through stock market investments. The investigation was assigned to a team led by Inspector Ashok Kumar.
During the inquiry, police traced the flow of funds and discovered that the victim’s money had been split into multiple transactions and deposited in several bank accounts created under fake company names.
Fake company account traced to Ayodhya, first suspect arrested
The probe revealed that ₹10.38 lakh of the total defrauded amount had been transferred to the account of a fictitious company named Belcrest. The account holder, identified as Lakshya Singh, a resident of Ayodhya (formerly Faizabad), was arrested on November 19.
During interrogation, Singh told investigators he had rented out his bank account to another accused, Shubham, for ₹20,000. Singh also admitted to opening the account on fake documents provided by Shubham and to having no knowledge of where the transferred money originated.
Mastermind Shubham traced through social media IP data
Following Singh’s arrest, the police began tracking Shubham, who had gone underground and frequently changed his phone numbers and locations to evade capture. Officers traced his digital trail using the IP address of his Instagram account, which eventually led them to a new mobile number.
Based on technical surveillance, a Crime Branch team arrested Shubham from the Tilak Nagar area on Saturday. Upon questioning, he revealed that he was working on the instructions of a foreign handler who coordinated the movement of fraudulently obtained funds through multiple accounts of fake companies.
Use of Chinese-Controlled App to Launder Funds
Investigators found that the gang used a China-controlled app called “Cool” to transfer and convert stolen funds into cryptocurrency. The money collected from victims was first moved through a series of Indian bank accounts and then invested in digital currencies via the app.
Shubham reportedly admitted that he received a small share of the cryptocurrency as commission for transferring funds as directed by his handler. Police said the suspects also used the same app to sell the cryptocurrency and encash the proceeds abroad, making the trail difficult to trace.
Evidence Destruction and Recovery of Mobile Phone
After learning about Singh’s arrest, Shubham allegedly destroyed evidence by burning the cheque book and SIM card linked to the Belcrest company account. Despite this, police managed to recover his mobile phone, which contained crucial data and chat records with the overseas handler.
Investigators have also identified six additional fake companies connected to the same racket. Further efforts are underway to trace other members involved in the money-laundering operation and to identify the handler coordinating the transactions from abroad.
