Silver Options Market Manipulation: Price Surges from ₹174 to ₹2,300 in 5 Minutes

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A cyberattack compromised the servers of a Noida-based financial risk-management technology firm, enabling an illicit trading scheme on the Multi Commodity Exchange platform.

The Incident

Breach Details

The intrusion occurred during the late hours of June 17, 2026, when unauthorized users gained access to the firm’s systems.

Price Surge

Over a five-minute period, the price of a specific contract surged from ₹174 to ₹2,300.

Investigation Findings

A forensic investigation by the Indian Computer Emergency Response Team uncovered deliberate manipulation of trading volumes and contract valuations. The probe revealed 1,238 unauthorized orders involving 5,559 contracts concentrated in thinly traded silver options.

The Investigation

Fraud Mechanisms

Investigators determined that approximately ₹12 crore in option premiums was used to create the illusion of market liquidity, facilitating coordinated profit extraction of ₹11 crore.

Arrest and Legal Action

Law enforcement arrested an individual identified as Ankit Rai following digital audit findings. Rai appeared before a local court on September 4 and was later released on bail.

Financial Losses

Impact on Market Participants

Multiple legitimate market participants incurred significant financial losses due to the artificial price movement. Shashikant Sahu suffered losses of ₹3.15 crore, while Meenu Rakheja and Shanti Bhushan Rakheja lost ₹2.90 crore and ₹2.09 crore respectively. Additional losses were reported by Nihar Ranjan (₹96 lakh), Arvind Mishra (₹83 lakh), Ravin Sahni (₹73 lakh), and Ritika Lohani.

Shashikant Sahu: ₹3.15 crore
Meenu Rakheja: ₹2.90 crore
Shanti Bhushan Rakheja: ₹2.09 crore
Nihar Ranjan: ₹96 lakh
Arvind Mishra: ₹83 lakh
Ravin Sahni: ₹73 lakh
Ritika Lohani: ₹73 lakh

Ongoing Investigations

Technical Analysis

Authorities are investigating the mechanisms used to breach the firm’s infrastructure and trace unauthorized server access. Technical teams are analyzing logs and communication records to determine the exact method of infiltration.