The Bengaluru City Police’s North Division has arrested 10 individuals involved in a large-scale cryptocurrency trading scam, which defrauded victims of lakhs of rupees. The arrests followed a complaint filed for a loss of Rs25,37,815/- by a victim who was tricked into investing in a fraudulent cryptocurrency platform.
The police investigation uncovered a sophisticated network of transactions, with the scammers utilizing mule bank accounts to launder the stolen funds. Three key suspects were apprehended at the airport upon their return from China, where they had met with the masterminds behind the scam. The remaining seven individuals managed mule accounts that were instrumental in laundering the stolen money.
During the operation, police seized crucial evidence, including 133 SIM cards and 127 bank passbooks. Investigations revealed that Rs7,34,768/- had been frozen across several accounts linked to the scam. Authorities expect further breakthroughs as the investigation progresses.
The scam involved criminals approaching victims through social media platforms like Facebook and Instagram, engaging them with seemingly innocent tasks such as reviewing luxury hotels. Once trust was established, the conversation shifted to more private platforms like WhatsApp or Telegram, where the scammers would propose lucrative cryptocurrency investments. One victim, convinced by the fraudsters, invested Rs25 lakhs across several mule accounts.
Mule accounts, often opened under false pretenses or by individuals unaware of their involvement in fraud, played a crucial role in the scam. These accounts were primarily from Karnataka Bank, used to obscure the money trail and make tracking difficult for authorities.
This investigation has revealed connections to a much larger operation, with links to 122 other cases reported on the National Cybercrime Reporting Portal. The scam spans across at least 20 Indian states, with the mastermind believed to be based in China. The international scope of the crime, along with the use of fake SIM cards and mule accounts, has exposed vulnerabilities in India’s banking and telecom sectors.
The Bengaluru police, in collaboration with banks, are continuing to investigate the seized devices and accounts. More arrests are expected as law enforcement agencies nationwide work together to apprehend the masterminds behind this cybercrime syndicate.
For now, Rs7.34 lakhs remain frozen across various accounts, with the investigation continuing. The case serves as a reminder for anyone involved in cryptocurrency investments to be cautious and verify the legitimacy of any investment opportunities, particularly those introduced through social media platforms.
Authorities have urged the public to avoid engaging with unknown individuals or unverified schemes related to cryptocurrency. The ease with which money can be laundered in digital currencies makes them a prime target for cybercriminals, but a dangerous venture for unsuspecting investors.
The Bengaluru police’s crackdown on this network has sent a clear message: Cybercriminals may use fake accounts and SIM cards to hide, but coordinated law enforcement efforts will eventually bring them to justice.