Bihar Police Disrupt International Cyber Fraud Ring Routing Crypto to China

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Bihar Police Cyber Crime Unit dismantles transnational cyber fraud network funneling funds to China via cryptocurrency and mule accounts.

Bihar Police Disrupt International Cyber Fraud Network Transferring Funds to China

The Bihar Police Cyber Crime Unit has apprehended four individuals involved in a transnational cyber fraud scheme that funneled illicit proceeds through corporate mule accounts and banking collusion to China via cryptocurrency. The operation, which spanned six months, processed over ₹14.67 Crore in fraudulent transactions. A coordinated effort between the Bihar Police Cyber Crime and Security Unit and the Patna Cyber Police Station dismantled a sophisticated money laundering and cyber fraud network operating within the state. The group targeted victims nationwide, siphoning funds through regional bank accounts before converting the illicit gains into cryptocurrency for transfer to handlers in China. Four key members of the organization were arrested during a multi-phase operation. The arrested individuals include Gautam Gambhir and Bivan Kumar from Kankarbagh, Tanay Singh from Ramkrishna Nagar, and Sumit Raj from Hilsa in the Nalanda district. Forensic analysis of seized financial records revealed the network operated a complex web of accounts, facilitating transactions exceeding ₹14.67 Crore within a short timeframe. This scale of activity highlights the evolution of localized cybercrime into a structured financial enterprise.

Cross-Border Capital Flight Mechanisms

The primary goal of the operation was to move funds across international borders while avoiding traditional regulatory oversight. Victims’ stolen funds were deposited into local accounts managed by the group, which then converted the money into digital tokens through peer-to-peer cryptocurrency markets. This process eliminated domestic paper trails before the assets were transferred to digital wallets in China. The Bihar Police have forwarded detailed case documentation to the Enforcement Directorate for further investigation under anti-money laundering laws. The case underscores the necessity for regional and federal law enforcement collaboration to address financial crimes involving decentralized technologies.

Seizure of Operational Infrastructure

Raid operations at the suspects’ locations recovered a range of tools used to sustain the network. Authorities confiscated four encrypted communication devices, six bank passbooks, thirteen ATM cards, and ten corporate chequebooks linked to fictitious identities. Additional seized items included six official rubber stamps for fake businesses, eight active SIM cards, and a custom QR payment code for rapid fund aggregation. The recovered equipment enabled the group to maintain multiple communication channels and banking tools, allowing them to rapidly transfer funds between accounts to evade detection. Data extraction from seized devices is ongoing to identify additional nodes and hidden cryptocurrency wallets within the network.

Banking Sector Vulnerabilities and Institutional Collusion

Investigations revealed the syndicate exploited local banking systems through collusion with compromised personnel. The group established high-volume corporate current accounts by working with corrupt bank staff, enabling them to move large sums without triggering anti-money laundering alerts. At least ten banking professionals across the state are under investigation for facilitating the network. Twenty-two bank branches, including those of the State Bank of India, Bank of Baroda, IndusInd Bank, ICICI Bank, HDFC Bank, and Canara Bank, were identified as hubs for fraudulent accounts. Regions such as Barh, Bakhtiyarpur, and specific Patna neighborhoods were flagged as hotspots for mule account creation.

Advanced Skimming Techniques and Legal Measures

The Patna Cyber Police also documented a new method of digital account exploitation that bypassed traditional security protocols. Two local residents lost ₹12.52 Lakh from their savings accounts through tools that disabled bank notification systems. To prevent further exploitation, the Cyber Crime Unit issued a public advisory against sharing bank credentials. Authorities emphasized that individuals who provide access to their accounts for financial schemes are legally liable as co-conspirators, regardless of claims of ignorance.

According to the Bihar Police Cyber Crime Unit, the case highlights the urgent need for stricter banking regulations and enhanced digital security measures to combat transnational cybercrime networks.