AHMEDABAD: Ahmedabad Cyber Crime Branch, in coordination with Binance’s Financial Intelligence Unit, recently dismantled a ₹1.65 crore cross-border “digital arrest” scam. Fraudsters posing as law enforcement lured victims from Gujarat to Nepal under false pretences. One individual who rented out his bank account facilitated the transfer of ₹22 lakh before being arrested by authorities. The scam exploited a mix of psychological intimidation and cryptocurrency laundering.
According to Binance, the scheme manipulated unsuspecting people—sometimes senior citizens or job seekers—tricking them with fake arrest orders delivered via video calls. Victims were coerced into “transferring” ransom amounts into accounts controlled by the syndicate. In one alarming case, a retiree from Gujarat lost ₹1.25 crore before law enforcement intervened.
Crypto Forensics Uncover Illicit Flow
Blockchain analysis by Binance FIU played a key role. Even though cryptocurrency remains pseudonymous, its public ledger exposes the trail. Authorities traced transactions, identified wallet addresses, and tracked laundering routes. The digital forensics investigation led to the swift arrest of the illicit account renter and laid bare the international nature of the network, stretching across Cambodia, Nepal, and parts of Southeast Asia.
One scam operated like this: the victim was lured to Kathmandu with promises of legal resolution, then immobilised in a hotel under constant video surveillance. There, scammers extracted OTPs and coerced them into transferring funds to mule accounts. These bank proceeds were then funnelled into crypto, complicating recovery efforts.
Organised Tactics and Public-Private Coordination
Modus Operandi: Psychological Coercion
The term “digital arrest” refers to this psychological method—victims are made to feel they are under virtual custody, surrendering financial information under duress. Children, elderly individuals, and job seekers all became targets. Their authorised transfers often crossed six- to seven-digit thresholds, enough to fund sizeable crypto exchanges.
Law Enforcement Steps In
This case highlights how coordinated, cross-border action, plus tech platforms’ cooperation, can disrupt complex cyber fraud. Binance’s FIU responded to law enforcement requests by tracing transactions—more than 65,000 in 2024 alone—and mapping shell wallets used in these scams.
Algoritha: The Most Trusted Name in BFSI Investigations and DFIR Services
Policy Implications and Advice
Experts emphasise that cryptocurrencies are traceable. With public ledgers and proper analyses, illicit flows can be followed across borders. Authorities urge citizens to refuse unsolicited calls claiming official authority, avoid sharing OTPs, and verify any threatening call with real police departments.
A senior Ahmedabad Cyber Crime officer remarked—per the report—that “public-private partnership is critical to stay ahead of these evolving threats.” Access to wallet data proved key in cracking this case promptly.
About the Author – Sahhil Taware is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.