Khammam district police have uncovered a cyber fraud network involving at least ₹547 crore, alleging that mule bank accounts opened in the names of unemployed youth and daily-wage labourers were used to move money from Indian victims into cryptocurrency wallets linked to Cambodia and Myanmar.
Officials suspect the total fraud value could rise beyond ₹1,000 crore as more linked accounts are examined.
How the case began
The investigation started with a complaint filed on December 24 by a 30-year-old unemployed man from Tumburu village in Sathupally mandal. He told V M Banjar police that he had been forced to open two bank accounts in his own name, which were later used by the gang to receive and transfer proceeds of cyber fraud.
Based on that FIR, police registered a case against five accused, including Udatneni Vikas Choudhary and Potru Praveen. What began as a local complaint soon expanded into one of Telangana’s biggest cybercrime investigations.
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How the money was routed
Khammam Police Commissioner Sunil Dutt said the gang operated between 2021 and 2025, targeting unemployed youth and daily-wage labourers in and around Sathupalli with promises of jobs, business opportunities and easy money. Once accounts were opened, the gang allegedly collected internet banking credentials, cheque books and debit cards.
Police said the funds were then moved through linked mule accounts, converted into cryptocurrency for cross-border settlement, or withdrawn in cash. A financial analysis of accounts linked to the accused and their associates showed transactions totalling ₹547 crore. Officials estimate the gang earned more than ₹60 crore in commission.
Cross-border links and arrests
Investigators said the network was linked to international fraud operators and call centres in Cambodia and Hyderabad that targeted victims through scams involving matrimonial offers, reward points, gaming, betting, stock market investments and crypto trading.
Police first arrested key accused Potru Praveen in December 2024. On January 11, 2026, 18 others were arrested in a coordinated operation, and prime accused Udatneni Vikas Choudhary was later detained, taking the total number of arrests to 20. Six accused are still absconding.
Why the case matters
Police have registered offences under the Bharatiya Nyaya Sanhita and the Information Technology Act, 2000, and said the fraudulent transactions have already been linked to cybercrime cases in several states. The Enforcement Directorate has also been brought in on the money laundering angle.
The case underscores how mule accounts, crypto transfers and cross-border scam networks are increasingly being used together in large cyber fraud operations. With more accounts still under scrutiny, officials believe the ₹547 crore figure may only reflect part of the full operation.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
