Gorakhpur Police Arrest Another Accused in ₹4.09 Crore Cyber Fraud Case

Police in Gorakhpur have arrested Govind Verma in a cyber fraud case involving alleged transactions worth ₹4.09 crore.

Verma, a resident of Aswanpar in the Gagaha area of Gorakhpur, is accused of converting proceeds from cyber fraud and online investment scams into cryptocurrency and transferring them to foreign wallets. Police recovered ₹2.51 lakh in cash, two laptops, a mobile phone and three ATM cards from him. He was produced before a court and sent to jail.

How did the accused allegedly move the fraud proceeds?

According to police, Verma allegedly worked for Maqsood Alam Khan, who is among the accused arrested earlier in the case. Investigators allege that Verma used laptops and mobile phones to convert money obtained through fraudulent activities into USDT cryptocurrency before arranging transfers to foreign wallets.

The suspected method involved moving money through mule bank accounts before converting it into digital assets. Police are examining the transactions to establish the source of the funds, trace their movement and identify the people who ultimately received them.

The operators of the foreign wallets, the countries involved and the total amount allegedly converted into cryptocurrency have not been disclosed.

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What is the scale of the alleged cyber fraud?

Police said complaints involving more than ₹4.09 crore have been linked to 34 mule bank accounts associated with the alleged network. The complaints have been reported across 14 states, including Uttar Pradesh, Bihar, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Telangana, West Bengal, Andhra Pradesh, Tamil Nadu and Uttarakhand.

Mule accounts are bank accounts used to receive or transfer money connected with illegal activities. According to the allegations under investigation, members of the network offered account holders commissions of up to 20 per cent in exchange for providing their accounts.

The accused allegedly persuaded individuals to open accounts and obtained their passbooks, ATM cards and cheques. Money linked to suspected online investment and trading scams was then allegedly routed through these accounts.

Who else has been arrested in the case?

Before Verma’s arrest, police had arrested five other accused and sent them to jail. They were identified as Navneet Pandey alias Aadesh, a resident of Nautanwa in Maharajganj district; Adarsh Singh alias Thynos, from Khurja in Chandauli district; Ravi Verma, from Basantpur Rain Basera in the Rajghat area; Pragya Ratan, from Kudaghat in the AIIMS area; and Maqsood Alam Khan, from Karimnagar in the Chiluatala area.

Police had recovered ₹13 lakh in cash from the five accused. The latest arrest has added another suspect to the investigation into the alleged financial network.

Investigators are examining the suspected roles of the accused, the bank accounts used to move the money and the links between the alleged fraud proceeds and cryptocurrency transfers. The seized electronic devices may also help establish how the transactions were arranged.

What are investigators examining next?

Police are working to identify other people who may have participated in the alleged operation and determine how the bank accounts were obtained and used. The investigation is also focused on tracing the funds after their conversion into USDT and identifying their ultimate destinations.

The involvement of 34 mule accounts and complaints from 14 states has widened the scope of the inquiry. Banking records, digital communications and cryptocurrency transaction details could help investigators reconstruct the movement of the money and establish the responsibilities of those involved.

The allegations against Verma and the other accused have yet to be established through judicial proceedings. The investigation remains underway as police seek to trace the funds and identify any additional members of the suspected network.