Indore police have uncovered a well-structured interstate and international cybercrime network that routed proceeds of online frauds to China-linked entities through mule bank accounts and cryptocurrency channels, leading to the arrest of five accused, officials said on Sunday.
Police said the racket operated through a layered financial system designed to obscure money trails generated from cyber frauds, illegal online gaming platforms and fake investment schemes. Investigations are ongoing to identify additional members of the network and establish its full international footprint.
Deputy Commissioner of Police (Zone-II) Krishna Lalchandani said the gang functioned through a technology-driven and organised framework, systematically exploiting unsuspecting individuals to act as intermediaries in the movement of fraud proceeds.
“The network targeted young people with promises of easy commissions, work-from-home income and quick returns. Their bank accounts were then misused to receive and transfer money generated from cyber frauds,” Lalchandani said.
Complaint That Triggered the Probe
The case surfaced after a complaint by Saloni Nandekar, a resident of Krishnabagh Colony, who alleged she was cheated of ₹1.63 lakh after being lured into a fake stock market investment scheme promising abnormally high returns.
Based on her complaint, the Aerodrome police registered a case under Section 318(4) of the Bharatiya Nyaya Sanhita (BNS). A subsequent technical examination of banking transactions revealed a recurring pattern of linked accounts being used to temporarily receive fraud money before it was quickly routed out of India.
Mule Accounts and Crypto Laundering Trail
During the investigation, police first detained Tofiq Rehmani, a resident of Noorani Nagar, after suspicious transactions were traced to his bank account. During interrogation, Rehmani admitted that he had rented out his own bank account and that of his brother in exchange for commission.
Based on his disclosures, police identified Himanshu Verma as the key operator of the network. Further questioning led to the arrest of his associates — Farhan, Jitendra Rawal and Praveen Chauhan.
Investigators said the accused either opened or procured bank accounts in the names of individuals who were often unaware of the legal consequences. Fraud proceeds were briefly parked in these mule accounts before being converted into USDT and other stable cryptocurrencies, and then transferred to digital wallets allegedly linked to Chinese companies.
“The system was deliberately structured to break the money trail. Once funds entered a mule account, they were layered through multiple transactions and converted into cryptocurrency to evade banking scrutiny and law enforcement tracking,” DCP Lalchandani said.
Seizures and Further Investigation
During searches, police seized 15 ATM cards linked to different banks, multiple mobile phones and transaction-related digital evidence. All five accused were produced before a local court, which granted police remand to facilitate deeper investigation.
Officials said efforts are underway to determine the total volume of illicit transactions, identify foreign end beneficiaries and uncover other domestic and international collaborators involved in the operation.
FCRF Analysis: Organised Cross-Border Cybercrime Model
According to the Future Crime Research Foundation (FCRF), such mule account and cryptocurrency-based operations are no longer isolated incidents but part of a structured transnational organised crime ecosystem.
FCRF’s analysis highlights a three-tier model:
- First layer — Mule account holders, often lured through ignorance or small financial incentives
- Second layer — Local handlers who ensure rapid fund movementIndore police bust an international cyber fraud network routing scam money to China-linked firms via mule accounts and crypto; five arrested.
- Third layer — Foreign crypto wallets and shell entities where money exits Indian jurisdiction
The foundation warned that individuals who believe they are merely “renting out” their bank accounts are, in legal terms, participating in money laundering and criminal conspiracy.
FCRF has cautioned that without real-time coordination between banks, telecom companies, cryptocurrency exchanges and law enforcement agencies, such networks will continue to evolve in sophistication.
Police Advisory to Citizens
Indore police issued a strong advisory urging citizens to stay alert against:
- Online job offers promising easy commissions
- Guaranteed investment returns
- Work-from-home income schemes
- Requests to share bank account details or ATM cards
“Sharing bank account details, ATM cards, passbooks, OTPs or mobile access is a punishable offence. Account holders will be held legally accountable even if they claim ignorance,” police said.
Conclusion
The Indore bust underscores how cyber fraud has evolved into an organised, cross-border crime model combining social engineering, mule accounts and cryptocurrency laundering. Authorities say public awareness, timely reporting and institutional coordination remain the most effective defences as such networks continue to adapt and expand.
