Gorakhpur Police Arrest Another Accused in 4.09 Crore Cyber Fraud Case

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Authorities in Gorakhpur have detained a suspect in a cyber fraud scheme involving ₹4.09 crore, with investigations into cryptocurrency conversions and mule accounts.

Arrest of Govind Verma

Gorakhpur authorities have detained an additional suspect in a cyber fraud scheme involving approximately ₹4.09 crore. The individual, identified as Govind Verma, is accused of facilitating the conversion of illicit funds into USDT cryptocurrency and transferring them to overseas digital wallets. Law enforcement recovered ₹2.51 lakh in cash, two laptops, a mobile phone, and three ATM cards during the operation. Verma appeared before a judicial court and was remanded to custody.

Collaboration with Maqsood Alam Khan

Investigative reports indicate that Verma allegedly collaborated with Maqsood Alam Khan, a previously arrested suspect in the case. According to police, Verma utilized computing devices to transform proceeds from online fraud and investment scams into digital assets before orchestrating cross-border transfers. The process reportedly involved intermediary bank accounts to obscure the origin of the funds.

Financial Investigations

Authorities are analyzing financial records to trace the flow of money and identify recipients of the cryptocurrency. Details regarding the foreign wallets, jurisdictions involved, and the total volume of converted assets remain undisclosed. The alleged fraud network is linked to 34 mule bank accounts, with complaints totaling over ₹4.09 crore reported across 14 states, including Uttar Pradesh, Bihar, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Telangana, West Bengal, Andhra Pradesh, Tamil Nadu, and Uttarakhand.

Mule Accounts and Incentives

Mule accounts are typically exploited to launder illicit funds by acting as intermediaries. Investigators allege that participants in the scheme offered incentives of up to 20% to individuals who provided their bank accounts, along with related documents such as passbooks, ATM cards, and cheques. Funds tied to suspected investment and trading scams were reportedly routed through these accounts.

Previous Arrests and Recovery

Prior to Verma’s arrest, five other suspects were detained and sent to jail. These individuals included Navneet Pandey (Aadesh), Adarsh Singh (Thynos), Ravi Verma, Pragya Ratan, and Maqsood Alam Khan. Police recovered ₹13 lakh in cash from the group. The latest arrest expands the scope of the inquiry into the financial network.

Investigation and Legal Proceedings

Investigators are examining the roles of the accused, the mechanisms used to acquire and deploy bank accounts, and the connections between fraud proceeds and cryptocurrency transactions. Seized electronic devices may provide insights into the operational structure of the scheme. Ongoing efforts focus on identifying additional participants and reconstructing the movement of funds. The investigation is prioritizing the tracing of USDT transactions to determine their final destinations. The involvement of multiple mule accounts and cross-state complaints has broadened the inquiry. Analysts are reviewing banking records, digital communications, and blockchain data to map the financial pathways and assign responsibility. Legal proceedings against Verma and the other accused are pending, with the probe continuing to uncover further details.