Police in Lucknow, Uttar Pradesh, have arrested several individuals in connection with a cyber fraud case, unearthing a large network. Investigations revealed that numerous young people were using their bank accounts for illicit financial transactions. Cryptocurrency and USDT were utilized for transactions within these accounts. The network was found to be involved in online investment schemes and fake job offers, linked to cryptocurrency and fraudulent online platforms.
A 24-year-old restaurant waiter, Ajay, was initially arrested by Lucknow police. His interrogation led to significant revelations. Ajay disclosed that a friend introduced him to a crypto trader, who offered him ₹20,000 to use his bank account for a day’s transactions.
Lured by the money, Ajay allowed his account to be used. The following day, a substantial amount of money was deposited into his account. As instructed by the trader, he transferred the money to specified individuals. Ajay later turned government witness after the police raid, revealing his involvement in an international cyber fraud group.
During intense questioning, Ajay provided detailed information about the cyber gang operating in Lucknow, assisting the police in their investigation. The probe, spanning three months, revealed that the group targeted dozens of people, using them to transfer funds.
The group specifically targeted vulnerable individuals, including those working in small shops and restaurants, as well as some college students. These individuals received payments ranging from ₹10,000 to ₹30,000 for allowing their bank accounts to be used.
According to police, the activities were orchestrated via encrypted Telegram channels operated by Chinese operatives or their proxies. Local agents collected account information and documents. During transaction days, mule account holders were taken to banks to withdraw cash immediately following large NEFT, RTGS, or IMPS transfers. The cash was then handed over to crypto brokers, who converted it to USDT using decentralized, non-KYC wallets. The Binance app was extensively used in this entire network.
Over the past two months, Lucknow police have uncovered money laundering of ₹5 lakh to ₹5 crore through such accounts. All the money was converted to USDT and sent abroad.
More than 60 individuals are currently being questioned. Police are concerned about the concentration of mule accounts in areas like Chowk, Indira Nagar, and other newly developed areas of Lucknow. While several cases have been exposed, officials believe the scope of the fraud is extensive.