Police in Lucknow, Uttar Pradesh, have successfully dismantled a cyber fraud ring, leading to the arrest of several individuals. The investigation uncovered a large network where young people were complicit in illegal financial transactions by allowing the use of their bank accounts. Cryptocurrency and USDT were used in these transactions, which were linked to online investment scams and fake job offers.
The investigation began with the arrest of Ajay, a 24-year-old restaurant waiter. His interrogation provided crucial insights. Ajay revealed that he was introduced to a crypto trader who offered him ₹20,000 for using his bank account for a day’s transactions.
Tempted by the offer, Ajay agreed to let his account be used. A large sum of money was then deposited into his account, which he subsequently transferred according to the instructions. Ajay later became a government witness after the police raid, exposing his involvement in an international cyber fraud group.
During extensive questioning, Ajay provided crucial details about the cyber gang’s operations in Lucknow, assisting the police in their investigation. The investigation, conducted over three months, revealed that the group targeted numerous individuals, using them to transfer funds.
The group specifically targeted those most vulnerable, including those working in small shops and restaurants, as well as some college students. They were offered payments between ₹10,000 and ₹30,000 to use their bank accounts.
Police investigations indicated that these operations were managed via encrypted Telegram channels, run by Chinese operators or their proxies. Local agents gathered account details and documents. On transaction days, mule account holders would withdraw cash immediately after large NEFT, RTGS, or IMPS transfers. This cash was then handed over to crypto brokers, who converted it into USDT using decentralized, non-KYC wallets. The Binance app was heavily used throughout this network.
Over the last two months, Lucknow police have identified money laundering of ₹5 lakh to ₹5 crore through such accounts. All the money was converted to USDT and sent abroad.
Over 60 individuals are currently being questioned. Police are concerned about the concentration of mule accounts in areas like Chowk, Indira Nagar, and newly developed areas of Lucknow. Despite the exposure of several cases, officials believe that the scope of the fraud is very extensive.