In a major breakthrough in a cryptocurrency investment fraud case, police in Gwalior have arrested two brothers from Ghaziabad for their alleged role in a ₹1.41 crore scam involving a factory owner. Preliminary investigations have revealed that the accused acted as “money mules,” providing their bank accounts to cyber fraudsters in exchange for commission, enabling the transfer and layering of defrauded funds.
According to the complaint, the victim, Durga Shankar Nagar, who runs a factory in the Pinto Park area of Gwalior, had approached the cyber crime police around six months ago after realizing he had been duped. He reported receiving an email offering lucrative investment opportunities in cryptocurrency through a platform named “Gold DGM Coin Fix Dot Com,” which promised unusually high returns.
Lured by the promise of quick profits, the victim transferred a total of ₹1,41,17,000 over a span of two months to multiple bank accounts as instructed by the fraudsters. However, when no returns were credited and communication became irregular, he suspected foul play and lodged a formal complaint.
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Brothers identified as “money mules”
During the investigation, authorities traced a portion of the defrauded amount to a bank account registered under the name “Mahadev Surgical” in Ghaziabad. The account was jointly operated by two brothers, identified as Aditya Sharma and Priyanshu Sharma, residents of Hapur district in Uttar Pradesh. Despite being issued notices to appear for questioning, both failed to comply.
Acting on intelligence inputs, the cyber crime team tracked their movements and learned that the duo had arrived in Gwalior discreetly in an attempt to seek anticipatory bail. Based on this tip-off, police apprehended them near a hospital in the city.
During interrogation, the accused reportedly admitted that they had allowed cyber fraudsters to use their bank account in exchange for a commission of around 1 percent. Investigators further revealed that transactions worth over ₹1.68 crore from various sources had been routed through their account, indicating that the operation extended beyond a single victim and could be part of a larger organized network.
Limited recovery, wider network suspected
Despite the significant volume of transactions, authorities have so far managed to recover only ₹59,000 from the account, raising concerns that the bulk of the funds has been rapidly transferred across multiple layers to evade detection.
Officials confirmed that four other individuals linked to the case had already been arrested earlier and sent to jail. The two brothers are currently in custody, and further interrogation is underway to uncover additional links and identify the key masterminds behind the fraud.
Investigators are now closely examining the money trail, banking patterns, and possible inter-state connections associated with the network. Early findings suggest that the syndicate may be operating across multiple states and could have targeted several victims using similar tactics.
Cyber experts note that cryptocurrency-related frauds have seen a sharp rise in recent years, with scammers exploiting the lack of awareness and regulatory clarity. Fraudsters typically lure victims with promises of high returns through fake platforms and use mule accounts to obscure the flow of money, making it difficult for authorities to trace the actual perpetrators.
In this case, officials are expanding the probe to identify all beneficiary accounts and track digital footprints linked to the transactions. The role of other intermediaries and account holders is also under scrutiny.
Authorities believe that further revelations are likely as the investigation progresses, and more arrests cannot be ruled out. The case is being treated as part of a broader cyber fraud network, and efforts are ongoing to dismantle the entire operation.
The two accused remain under interrogation as agencies continue to pursue every lead to bring the full network to light and prevent similar frauds in the future.
