Varanasi: In a major breakthrough, the Crime Branch and local police in Varanasi, Uttar Pradesh, have busted a large inter-state cyber–hawala syndicate allegedly involved in a ₹700 crore fraud. The gang reportedly lured nearly two lakh investors across the country by promising high returns through fake IPL investment schemes circulated on social media platforms. Police raided a flat in the Taktakpur area and arrested 13 accused, including the alleged kingpin.
Multi-Layered Schemes and Siphoning Logistics
Investigators revealed that the network operated in a highly structured, multi-layered manner. In the initial phase, victims were shown small but consistent returns on investments to build trust. Once confidence was established, they were pushed to invest larger sums, after which the funds were siphoned off completely. Around 6% of the defrauded amount was reportedly distributed as commission among agents, while the bulk of the money was routed to the top handlers of the syndicate.
According to Additional Commissioner of Police (Crime) Alok Priyadarshi, the mastermind of the racket is Ritesh Diwakar Shukla, a resident of Nalasopara in Palghar, Mumbai, originally linked to the Kapsethi area of Varanasi. The investigation further revealed that the cheated money was collected through a fake Mumbai-based firm under the guise of IPL investments and subsequently transferred through a hawala network to Varanasi and Lucknow.
Officials said the syndicate used cryptocurrency and real estate investments extensively to launder illicit proceeds. Recently, a land deal worth around ₹75 lakh was executed in Lucknow using such funds, though its actual market value is believed to be significantly higher.
Wallet Seizures and Target Profile Demographics
During the raid, police recovered 17 mobile phones, 10 laptops, and several digital devices used in the operation. Investigators also seized cryptocurrency assets worth nearly ₹1 crore from multiple digital wallets. Officials believe this is only a fraction of the total illegal wealth generated by the network, and the actual financial trail could be much larger.
The probe has also revealed that most of the accused are well-educated individuals, including graduates in engineering (B.Tech), management (MBA/BBA), and commerce (B.Com). Some had also completed professional courses such as spoken English training. Police believe that the lure of quick money and a shortcut to wealth pushed these youths into organized cybercrime networks.
The arrested individuals include Ritesh Diwakar Shukla (kingpin), Ravi Yadav (Cholapur), Arpit Tiwari (Sultanpur), Aman Singh (Phoolpur), Vikas Patel (Jaunpur), a resident from Jamalahapur (Bihar), Sachin Singh alias Shailendra and Gaurav Chauhan (Jaipur), Devesh Chauhan (Jaipur), Aniket Kumar (Fatehpur), Amit Tiwari (Jaunpur), Saurabh Chauhan (Etawah), and Rahul Maurya (Bahraich).
Social Engineering and Digital Hype Manipulations
Police said the gang targeted victims through social media platforms, messaging apps, and fake investment portals. Funds were moved through multiple layers of digital transactions and hawala channels to evade detection and obscure the money trail.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh noted that such cases heavily rely on “social engineering” techniques. He said criminals exploit emotional trust and financial greed to manipulate victims on a large scale. According to him, “The promise of quick wealth and digital investment hype has become the most powerful weapon, and even educated individuals are falling prey to it.”
Transnational Integrations and Financial Trail Audits
Authorities emphasized that the case is not merely a cyber fraud but a sophisticated financial crime network combining modern technology, cryptocurrency, and traditional hawala systems.
The police are now tracing the complete financial trail, digital footprints, and possible international links. Officials believe that further revelations in the coming days may expose a much larger network operating across multiple states, potentially uncovering deeper layers of this nationwide racket.
