Hyderabad crypto fraud: Rs 712 Cr scam, Chinese operators arrested; NIA takes over investigation
Hyderabad police uncovers Rs 712 crore crypto wallet fraud led by Chinese operators; 9 arrested, cyber frauds rise with cryptocurrencies. Investigation files have been handed over to NIA for further escalations.
Highlights
- Hyderabad police bust Rs 712 crore cryptowallet fraud, arrests made.
- Chinese operators involved; terror financing linkages found in transactions.
- NIA takes over the case for further escalations.
In a noteworthy development, the Hyderabad police have successfully uncovered a substantial cryptocurrency wallet investment fraud, totaling Rs 712 crore, which was orchestrated by Chinese operators. In a recent update, it has been revealed that the case files pertaining to this investigation have been officially transferred to the National Investigation Agency (NIA) for further examination.
Following the registration of a case by the Cyber Crime Police, nine individuals were apprehended from different parts of the country in connection with the scam.
What's the case all about?
According to a PTI report, the elaborate scheme involved deceptive tactics and money transfers, and some of the transactions were even linked to a Hezbollah wallet associated with terror financing. Let's delve into the case details to understand the modus operandi and the far-reaching implications of such cyberfrauds.
Deceptive schemes lure unsuspecting victims
The investigation revealed that the fraudsters lured innocent victims, such as a Hyderabad resident, with enticing part-time job offers through messaging apps. The complainant believed the opportunity to be genuine and registered on the fraudsters' website. Initially, they were given simple tasks and earned a profit of Rs 866 by investing Rs 1,000. However, as he continued to support, he found himself unable to withdraw his earnings, leading to a total loss of Rs 28 lakh.
We are alerting Central agencies regarding this and the cybercrime unit of the Union home ministry has been given the details. It is quite shocking and surprising that even highly paid software professionals have lost as much as ₹ 82 lakh
Complex money trail unravelled
During the course of the investigation, it was discovered that the victim's lost money had been channelled through six accounts before being transferred to various Indian bank accounts and ultimately to Dubai. The fraudulent proceeds were then used to purchase cryptocurrency, making it challenging for law enforcement to trace the funds. Additionally, the police found connections between an arrested individual from Ahmedabad and Chinese citizens. This individual played a critical role by sharing information on Indian bank accounts and facilitating access to these accounts using OTPs from locations in Dubai or China through remote access apps.
Multi-layered fraud culminating in massive siphoning
The elaborate fraud involved several layers of complexity. One of the arrested individuals was found to have shared over 65 accounts with Chinese operators, resulting in transactions amounting to Rs 128 crore. Furthermore, the fraudsters skillfully converted the stolen money into United States Department of Treasury (USDT) cryptocurrency, totalling a staggering Rs 584 crore. As a result, the total amount siphoned off through the fraudulent scheme reached an alarming Rs 712 crore.
The rise of cyberfrauds and cryptocurrencies
This recent incident sheds light on the rising trend of cyber frauds facilitated by the advent of cryptocurrencies. While digital currencies have brought revolutionary advancements in the financial landscape, they have also become fertile ground for criminals to exploit unsuspecting individuals. The anonymous and decentralised nature of cryptocurrencies makes it challenging for authorities to trace and recover stolen funds, enabling fraudsters to operate with impunity.
To combat this growing menace, law enforcement agencies and regulators must work collaboratively to enhance cybersecurity measures, raise public awareness about potential scams, and implement robust mechanisms to safeguard investors and prevent further incidents of such financial fraud.
