In a significant crackdown on organised cybercrime, Bihar Police have exposed a highly coordinated cyber fraud network involved in large-scale personal data theft and cryptocurrency-based financial fraud, leading to losses of nearly ₹2 crore. The alleged mastermind of the operation has been arrested in Purnea district, officials said on Tuesday.
The operation was carried out jointly by the Special Task Force (STF), Economic Offences Unit (EOU), cyber police, and local law enforcement following actionable intelligence. The accused, identified as Rakesh Mandal, was arrested from the Mufassil police station area, where he had allegedly been operating the digital racket for over a year.
Senior police officials described the arrest as one of the most important cybercrime breakthroughs in the region, highlighting the growing sophistication of digital fraud networks operating from semi-urban centres.
Massive Digital and Financial Seizures
During the raid, police seized cryptocurrency assets worth approximately ₹2 crore (around $190,000), along with ₹2.8 lakh in cash. Investigators also recovered nine mobile phones, a laptop, a MacBook, an iPad, and multiple bank passbooks and financial documents linked to different accounts.
Officials said the volume and diversity of seized devices pointed to a well-structured, multi-layered cyber operation, rather than an isolated act of online fraud.
Data Leak Website Exposed
Providing details of the investigation, Additional Superintendent of Police Alok Ranjan said the breakthrough came after intelligence inputs from “Saarthi,” a cyber-monitoring agency that tracks sensitive digital activity.
The probe revealed that the accused was running a website named Proxyearth.org, which enabled users to access confidential personal data by simply entering a mobile number. The information exposed included primary and alternate phone numbers and other private details, posing serious risks of identity theft and financial misuse.
“The website was designed to exploit data vulnerabilities at scale and represented a serious breach of individual privacy,” a senior officer said.
Personal Data Sourced via Telegram Channels
During interrogation, Rakesh Mandal allegedly admitted that he procured bulk personal data through a Telegram channel known as “DDC Group.” This data was then monetised through the website and other digital tools, officials said.
Investigators believe that thousands of individuals’ personal details may have been compromised through this network, raising concerns about secondary frauds and financial crimes.
Earnings from Banned Apps Routed Through Crypto
Police further discovered that since 2024, the accused had been promoting banned gaming and betting applications through Telegram channels, including the prohibited “Tiranga App.” Revenue generated from these promotions was converted into cryptocurrency to obscure the money trail and evade detection by financial authorities.
Officials said the use of crypto assets allowed the network to bypass conventional banking systems and delay enforcement action.
End-to-End Crypto-to-Cash System
According to investigators, Rakesh Mandal, with the help of two associates — Rohan and Raunak, both currently absconding — created a complete system to convert cryptocurrency into cash using multiple SIM cards and bank accounts.
In a particularly serious revelation, police said the group had developed its own crypto exchange application, making it easier to move illicit funds and complicating tracking efforts.
Hunt for Absconders, Global Angle Under Scanner
While Rakesh Mandal has been sent to judicial custody, police have launched a manhunt for the two absconding accused. Special teams have been formed to trace them, and digital forensics experts are analysing seized devices.
Authorities are also investigating whether the crypto funds originated domestically or were routed through international money-laundering channels, a possibility that could bring central agencies into the probe.
Strong Message on Cybercrime
Senior officials said the action sends a clear warning to cybercriminals operating under the cover of encrypted platforms and digital currencies. “Technology will not shield offenders from accountability,” an officer said.
Police indicated that similar networks operating elsewhere in Bihar and neighbouring states are now under surveillance, with more coordinated cyber enforcement actions expected in the coming weeks.
