Investigators have uncovered what is believed to be Madhya Pradesh’s largest online trading cyber fraud and money laundering network after discovering that ₹21.05 crore allegedly siphoned from a 70-year-old chartered accountant in Gwalior was routed through 20,507 mule bank accounts across the country and layered through 12 levels of financial transactions. According to the State Cyber Cell, ₹1.92 crore has been frozen through the banking system so far, while forensic analysis continues to identify additional transaction layers and linked accounts.
The victim, Ashok Vijayvargiya, who also serves as the Chief Election Officer of the Gwalior Chamber of Commerce, alleged in his complaint that he was contacted via WhatsApp in December 2025 and lured into investing in cryptocurrency through a fake online trading platform. A woman posing as an investment adviser promised exceptionally high returns before directing him to register on a website and invest in USDT (Tether) and Bitcoin (BTC).
According to the FIR, Vijayvargiya made his first investment of ₹1,00,001 in four instalments on December 25, 2025. A few days later, he invested another ₹1,00,001. The online trading portal displayed steadily rising profits, and on January 7, 2026, he successfully withdrew ₹1,88,160 into his bank account. Investigators believe the withdrawal was deliberately permitted to build the victim’s confidence and encourage substantially larger investments.
The accused allegedly continued persuading him to invest more by assuring him of higher returns. As stated in the complaint, Vijayvargiya transferred crores of rupees through RTGS and other banking channels from multiple bank accounts. The transfers included ₹15 lakh from his Union Bank account, ₹6.69 crore from his HDFC Bank account, and ₹10.6692 crore and ₹3.55 crore from two separate ICICI Bank accounts, taking his total investment to ₹21,05,92,000.
When he attempted to withdraw his funds, the fraudsters allegedly demanded ₹10.84 crore as income tax before processing the payment. According to the complaint, the woman claimed she was also an investor and promised to arrange part of the amount, prompting Vijayvargiya to deposit an additional ₹5 crore in multiple instalments. Even after this payment, his request to withdraw nearly ₹33.25 crore—representing both his principal investment and the profits displayed on the portal—was rejected. The fraudsters allegedly informed him that withdrawals exceeding ₹1 crore had been classified as “high risk” and required an additional deposit of 0.2 million USDT as margin and security. It was only after discussing the matter with friends that he realised he had been defrauded and approached the State Cyber Cell.
Financial analysis conducted during the investigation revealed that the stolen money had been systematically routed through thousands of accounts. Investigators identified 76 accounts in the first layer, 493 in the second, 12,720 in the third, and 7,218 in the fourth. Together, these four stages account for 20,507 identified mule accounts, while investigators have traced the complete money trail across 12 transaction layers.
The probe further revealed that the funds were rapidly moved through current and mule accounts spread across several states, including Tamil Nadu, Kerala, Andhra Pradesh, Maharashtra and West Bengal, making it significantly more difficult to identify the ultimate beneficiaries. Multiple bank accounts across various financial institutions are suspected to have been used as part of the laundering network.
The State Cyber Cell is now coordinating with banks and financial intelligence agencies across India to identify account operators, trace the ultimate beneficiaries and recover the remaining funds. Investigators suspect that the fraud was orchestrated by a well-organised interstate cybercrime syndicate operating fake cryptocurrency and online trading platforms.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said that extensive mule account networks have become one of the biggest challenges in investigating large-scale cyber frauds. He noted that fraudsters often allow small initial withdrawals to gain the victim’s confidence before demanding huge payments in the name of taxes, processing charges or security deposits. He advised investors to use only authorised and regulated investment platforms and to remain cautious of any scheme promising unusually high returns.
