Varanasi Police Uncover ₹700 Crore Cyber Fraud Linked to 2,000 Accounts

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Varanasi Cyber Crime Police are investigating a ₹700 crore financial fraud scheme linked to illicit IPL betting activities. The operation allegedly utilized a network of over 2,000 bank accounts, cryptocurrency transactions, gaming platforms, and informal money transfer systems to conceal illicit financial flows. Authorities have identified a Mumbai-based entity, referred to as “Malik Firm,” as the primary coordinator of the scheme, which targeted individuals through deceptive social media advertisements and Telegram channels offering high-yield investment opportunities. Investigators revealed that victims were enticed with promises of substantial returns from IPL betting and speculative financial ventures. Funds collected through these schemes were systematically converted into digital assets and distributed via gaming platforms before being transferred abroad. Additional financial movements were facilitated through hawala networks operating across Uttar Pradesh, Delhi, Haryana, and Mumbai. Preliminary analysis indicates that a portion of the illicit proceeds was allocated to real estate acquisitions. During a recent operation, law enforcement recovered approximately ₹1 crore in cryptocurrency following a raid on an apartment in Taktakapur, where 13 individuals were detained. The investigation uncovered that key operatives received training in Mumbai prior to expanding the fraud network. Digital evidence suggests that transactions were managed through Telegram channels associated with the “Malik Firm,” with funds distributed across multiple bank accounts and rapidly converted into cryptocurrency for international transfer. A separate probe into banking records, digital footprints, and overseas connections is ongoing to trace the full scope of the operation and identify senior orchestrators. Cybercrime experts highlighted the complexity of such schemes, noting that layered financial mechanisms, including cryptocurrency and informal networks, significantly complicate tracking efforts. A former IPS officer specializing in cyber law emphasized the importance of public awareness and prompt reporting in disrupting similar criminal enterprises. The case underscores the growing sophistication of cyber-enabled financial crimes, with fraudsters leveraging digital platforms and traditional money laundering methods to evade detection. Authorities continue to analyze transaction patterns and collaborate with international agencies to dismantle the network.