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.

A significant fraud case has come to light in Kanpur, where a trader who ordered 35 tons of used edible oil was instead delivered water, resulting in a financial loss of Rs 34 lakh. Police at Juhi Station have registered an FIR, and investigations are ongoing to track down the perpetrators.

Fraud Orchestrated via Social Media Connections

The victim, Anil Kumar Dixit, manager at Navgrah Edible Oils in Yashodanagar, connected with alleged agents Nitin and Suresh Adukia from Juhi through a social media acquaintance. The scammers claimed to act as commission agents for suppliers of used edible oil and fatty acids, offering below-market rates.

In June 2025, Dixit’s firm placed an order at Rs 92.5 per kg, sending driver Pira Ram to collect the shipment. On October 31, Rs 34 lakh was transferred to the bank account provided by the fraudsters.

Fake Documents Used to Build Trust

The criminals sent falsified weight slips and e-way bills via WhatsApp, deceiving the trader. Suspecting inconsistencies, the driver arranged a separate weighment, revealing only 24 tons of material. Laboratory tests in Kanpur later confirmed that the delivered substance was water, not oil.

Juhi police confirmed that the FIR has been filed, and a manhunt for the accused is underway.

Growing Trend of Digital Trade Frauds

Experts say the Kanpur case reflects evolving methods of trade fraud, where scammers exploit social media and digital platforms to manipulate even experienced traders. Large transactions without prior verification of goods, payments, and delivery are increasingly targeted.

Rising Fraud Cases in Kanpur

The region has seen multiple high-profile scams in recent years:

• Gold and bullion traders losing millions through WhatsApp scams
• Confiscation of counterfeit edible oils and engine oils
• Interstate networks distributing adulterated petrol and diesel uncovered by STF

These incidents indicate that both large and small traders are vulnerable to sophisticated fraud schemes.

Police and Administrative Response

Authorities have urged traders to exercise caution in online transactions and to verify delivery, payments, and product quality before finalizing high-value deals. The police are actively pursuing the culprits involved in this latest Kanpur scam.

Authorities in Punjab and Rajasthan have uncovered a sophisticated arms smuggling network operating across state lines, with links traced to Pakistan and other international locations. The probe follows the recovery of grenades and firearms in Ludhiana, prompting a multi-agency investigation into a transnational terror pipeline.

Key Findings of the Investigation

• ISI Connection: Pakistan-based ISI handler Jasvir Singh, alias Jassa, has been identified as supervising the network remotely, directing operatives, coordinating arms movement, and arranging payments.
• Rajasthan Prisons’ Role: Several inmates in Rajasthan prisons are suspected of coordinating communication, logistics, and fund transfers from inside jail premises. Authorities are seeking production warrants to interrogate them.
• Network Scale: Investigators have identified 26 suspected operatives handling procurement, transport, and distribution of arms across Punjab. Nearly 80 virtual phone numbers were discovered, allegedly used for encrypted communications and coordination.

Recent Arrests and Developments

• On November 20, Shamsher and his associates were arrested and reportedly confessed to transporting consignments under instructions from ISI-linked handlers, receiving drugs and ₹12,000 per delivery.
• Two men intercepted while collecting grenades were injured and taken into custody. CT scans are being repeated to verify medical reports before further interrogation.

International Links

• The probe revealed an international phone number potentially connected to a Southeast Asian country.
• Investigators are treating this case alongside a prior grenade recovery incident involving a Malaysia-based handler as part of a larger, coordinated smuggling and terror-financing operation.

Seizures So Far

• 2 grenades
• 5 pistols
• Over 40 rounds of ammunition

Authorities believe additional consignments may be hidden in warehouses or other locations across the region.

Security Implications

The use of virtual numbers and jail-based communication systems poses a new challenge for law enforcement. Security agencies remain on high alert to dismantle this network and prevent potential threats to public safety and national security. Further arrests and disclosures are expected as the investigation continues.