7th Suspect Arrested in ₹28,000 Crore Cyberfraud Case for Allegedly Unfreezing Mule Accounts -

7th Suspect Arrested in ₹28,000 Crore Cyberfraud Case for Allegedly Unfreezing Mule Accounts

In conjunction with a nationwide cyberfraud and money-laundering probe, the ED has detained barrister Rashesh Upadhyay, also known as Rashesh Shah, at the airport in Mumbai. The arrest took place on October 24 and was reported on October 25, 2026.

In an inquiry that began with a ₹2.60-crore digital arrest fraud that was reported in Goa, this is the sixth arrest.

Enforcement Directorate

Upadhyay was crucial in setting up the unfreezing of bank accounts linked to alleged gains from cybercrime. Investigators believe that in order to enable the release of frozen accounts, payments were made via middlemen, such as conventional cash-transfer networks.

About 400 suspected mule accounts and financial transactions totaling nearly ₹28,000 crore have been found as a result of the larger probe. Upadhyay was placed in ED custody until October 29.

The ₹28,000-crore amount does not represent actual fraud losses; rather, it pertains to transactions that were investigated. Investigations are still ongoing into officials’ alleged participation in improperly unfreezing accounts.

Why it matters?

Integrity of the freezing and unfreezing processes for bank accounts,
Potential networks of intermediaries, and
Measures to prevent meddling in financial crime investigations.

Priorities of Investigation as of now

Tracing account-freezing audit trails is the investigation’s first priority in order to find the first points of compromise and examine later beneficiary account networks. In order to provide evidence of money laundering under the Prevention of Money Laundering Act (PMLA), it then maps the wider cash-transfer channels. Initiating formal asset recovery efforts and addressing government accountability for unlawful account unfreezing are the final priorities.

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