A major cyber fraud ring has been dismantled by Lucknow police in Uttar Pradesh, resulting in the arrest of multiple individuals. Investigations unveiled a sophisticated network where young people were illicitly using their bank accounts for illegal financial activities. The transactions involved cryptocurrencies and USDT, tied to online investment scams and fake job offers.
The investigation began with the arrest of Ajay, a 24-year-old restaurant waiter. His interrogation led to key breakthroughs. Ajay revealed that a crypto trader, introduced by a friend, offered him ₹20,000 for using his bank account for a day.
Accepting the offer, Ajay allowed his account to be used. Subsequently, large sums of money were deposited into his account, which he then transferred as directed. Following a police raid, Ajay became a government witness, exposing his involvement in an international cyber fraud group.
Under intense questioning, Ajay disclosed crucial information about the cyber gang’s operations in Lucknow, aiding the police investigation. The three-month investigation revealed that the group targeted numerous individuals, using them as conduits for fund transfers.
The group specifically targeted those vulnerable to their schemes, including employees of small businesses and restaurants, as well as college students. These individuals were paid between ₹10,000 and ₹30,000 for using their bank accounts.
The police investigation revealed that the operations were managed through encrypted Telegram channels by Chinese operators or their proxies. Local agents collected account details and documentation. On transaction days, mule account holders were instructed to withdraw cash after NEFT, RTGS, or IMPS transfers. The cash was then passed to crypto brokers, who converted it into USDT via decentralized, non-KYC wallets. The Binance app was a central component of the network.
Over the past two months, Lucknow police have identified money laundering of ₹5 lakh to ₹5 crore through these accounts. All funds were converted to USDT and transferred overseas.
Currently, over 60 individuals are under questioning. Authorities are concerned about the prevalence of mule accounts in areas such as Chowk, Indira Nagar, and newer residential areas in Lucknow. Despite the exposure of several cases, officials believe the full scale of the fraud is far greater.