₹1.50 Crore Mule Account Fraud Case: 6 Arrests in Cybercrime Scandal

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Kanpur Police have detained six individuals in connection with a ₹1.50 crore financial fraud scheme involving the procurement of bank accounts for illicit purposes.

Arrests and Investigation

Kanpur Police have detained six individuals in connection with a ₹1.50 crore financial fraud scheme involving the procurement of bank accounts for illicit purposes. The operation, which utilized cryptocurrency to launder stolen funds, targeted victims across multiple states. The mastermind behind the network, a graduate student, remains at large.

The Mastermind and Fugitive

The investigation commenced after a student from Vishnupuri reported that a friend’s bank account was frozen following the deposit of ₹14 lakh in suspected fraudulent funds. This triggered a probe by local authorities, which uncovered a broader criminal enterprise. Kerala Police had previously issued a notice related to the account, prompting a deeper examination of the financial network.

Key Suspects and Activities

During the investigation, Nawabganj Police and the Cyber Cell arrested Aditya Bajpai, Atul Sinha, Viraj Singh, Krishna, Yash Pratap Singh, and Shivansh Gupta. Authorities allege that these individuals facilitated the acquisition of bank accounts at the direction of Kshitij Dwivedi, the fugitive orchestrator of the scheme. The accounts were reportedly used to process illicit proceeds from online gaming, betting, and investment frauds.

Financial Network and Methods

Investigators identified 35 bank accounts linked to the suspects, with over 50 complaints filed against them. Funds obtained from victims were consolidated into a central account before being converted into USDT (Tether) via cryptocurrency exchanges such as Binance, Bybit, Bitget, MetaMask, and Trust Wallet. Digital assets were then allegedly transferred overseas through a Delhi-based contact.

Seizures and Tactics

The syndicate employed tactics to evade detection, including assigning identical PINs to ATM cards for operational efficiency. When accounts were frozen, related materials were destroyed to prevent exposure. During raids, police seized five Android devices, 25 ATM cards, three chequebooks, ₹58,800 in cash, a car, and a motorcycle. Forensic analysis of the recovered items is underway to trace fund movements and identify additional participants.

Expert Insights and Warnings

A cybersecurity expert highlighted the growing reliance on mule accounts and cryptocurrency to obscure the origins of illicit funds. He emphasized that individuals should avoid sharing banking details or KYC documents for financial incentives, as account holders could face legal consequences.

Ongoing Investigation and Future Actions

Law enforcement continues to investigate the case, focusing on the fugitive suspect and potential interstate and international financial ties. Further arrests and legal actions are anticipated if new evidence emerges during the probe.