An investigation into the alleged ₹19.84 crore cryptocurrency fraud involving a Ludhiana-based industrialist has uncovered a highly complex and organized financial network, where illicit funds were systematically routed through more than 200 mule accounts, fake banking identities, and multiple digital payment systems. The structure appears to have been designed specifically to make the money trail extremely difficult to trace.
According to initial findings, the defrauded funds were first transferred into 76 fake bank accounts opened across multiple financial institutions. These accounts were then used as the starting point of a multi-layered laundering process, where the money was broken down and circulated through nearly 200 mule accounts and prepaid payment instruments (PPIs), creating multiple layers of transactions to obscure its origin.
Investigators also suspect that online gaming platforms were used as an informal channel resembling hawala-style transfers. These platforms allegedly helped disguise transactions by converting funds into different digital forms and moving them across multiple channels, making detection significantly more difficult.
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How the industrialist fell into the trap
The victim, a Ludhiana-based industrialist, was allegedly trapped over a period of six months in a coordinated cryptocurrency investment scam. The scheme was promoted through WhatsApp messages, fake websites, and counterfeit trading platforms designed to appear legitimate and trustworthy.
As per investigation records, the victim transferred over ₹5 crore within just four days in November 2025, believing the platform was generating genuine returns. The illusion of profits and continuous manipulation played a key role in pushing repeated high-value transfers.
Further investigation revealed that at least 76 mule accounts were used across multiple Indian states, including Delhi, Maharashtra, Gujarat, Punjab, and Karnataka. These accounts were opened across different banks to ensure that no single institution could trace the complete money flow.
Fake dashboards, forged documents, and “pig‑butchering” tactics
The victim was shown fake cryptocurrency dashboards and trading interfaces that closely resembled legitimate platforms. Artificial profit graphs and balance updates were continuously displayed to maintain confidence, while the funds were steadily routed into accounts controlled by the fraud network.
The complaint also highlights the use of forged SEBI certificates, fake company registration documents, and other fabricated credentials to establish credibility and deceive the victim over an extended period.
Reports indicate that modern cyber fraud networks are increasingly using prepaid wallets, digital tokens, and gaming ecosystems as tools for laundering money. These methods create additional complexity for investigators, as transactions become fragmented across multiple digital layers.
Experts note that such frauds often rely on a method known as “pig butchering,” where victims are gradually groomed through trust-building interactions before being encouraged to invest large sums into fake platforms.
Cross‑border trail and systemic challenges
Investigations are also exploring whether international digital wallets and offshore cryptocurrency exchanges were involved in further obscuring and transferring funds outside the country, making recovery more challenging.
Preliminary analysis suggests that the entire operation was highly structured, involving coordinated use of WhatsApp, encrypted messaging applications, and cloned websites to execute and manage the fraud.
Authorities are now focused on identifying the masterminds behind the network and mapping the entire laundering chain in order to trace and potentially recover the stolen funds.
Officials believe that without stronger coordination between financial institutions, cybercrime units, and telecom operators, it is extremely difficult to effectively combat such sophisticated and layered cyber fraud networks.
This case is being regarded as one of the most complex cyber financial fraud investigations in recent years, highlighting the growing threat of digital investment scams and the urgent need to strengthen cybersecurity and financial fraud prevention systems.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
