Delhi Police Expose Crypto-Laundering Network Using Chinese Apps, Two Arrested Firm Under Probe

New Delhi: The Delhi Police Crime Branch has uncovered a sophisticated cyber-laundering network that used Chinese-controlled mobile apps and fake company bank accounts to convert proceeds of cyber fraud into cryptocurrency. Two suspects have been arrested, and investigators say the racket spans multiple states with links to foreign handlers.

Elderly Victim Defrauded of ₹33.10 Lakh in Stock Investment Scam

The investigation began after an elderly Delhi resident filed an online FIR reporting a ₹33.10 lakh loss in a fake stock investment scheme. According to DCP (Crime Branch) Aditya Gautam, the victim was lured with promises of high returns before the money was siphoned off through multiple fake entities.

A team led by Inspector Ashok Kumar traced the fund trail and discovered that the money had been split and deposited across fake company accounts to obscure its origin.

Ayodhya Resident First Arrested After Fake Company Account Identified

Police found that ₹10.38 lakh was transferred to the bank account of a fictitious company named Belcrest. The account holder, Lakshya Singh of Ayodhya, was arrested on November 19.

Singh admitted he opened the account using forged documents provided by another accused, Shubham, in exchange for ₹20,000. He claimed no knowledge of the fraud and said he simply “rented out” his account.

Mastermind Shubham Nabbed Through IP Tracking of Social Media Accounts

Shubham had been evading arrest by frequently switching mobile numbers and locations. However, Crime Branch officers traced him using the IP address of his Instagram account, eventually leading to his arrest in Tilak Nagar.

During interrogation, he confessed to working under the instructions of a foreign handler, helping move fraudulent funds through India-based shell companies.

Chinese-Controlled “Cool” App Used to Convert Stolen Funds Into Cryptocurrency

A major breakthrough in the case was the discovery that the gang used a Chinese-controlled app named “Cool” to convert stolen money into cryptocurrency.

How the laundering network operated:

• Victim funds were funneled into accounts of shell companies.
• Money was then transferred to the Cool app.
• The app was used to buy cryptocurrency on behalf of the foreign handler.
• Crypto assets were sold abroad, making the money difficult to trace.
• Shubham received a commission in cryptocurrency for each transaction.

Police say this method allowed the network to bypass traditional financial checkpoints and move money across borders instantly.

Suspect Tried to Destroy Evidence After Accomplice’s Arrest

After learning of Singh’s arrest, Shubham attempted to destroy crucial evidence by burning the cheque book and SIM card associated with the Belcrest account. Despite this, police recovered his mobile phone, containing key chats, logs, and transaction details with foreign handlers.

Investigators have also identified six additional fake companies linked to the same network.

Probe Expands as Police Track Foreign Handler and More Associates

Delhi Police are now tracing other members involved in the cyber-laundering ring and working to identify the overseas handler who coordinated the movement of funds.

Officials say the case highlights how Chinese apps, fake companies, and cryptocurrency are increasingly being used to launder cybercrime proceeds in India.