New Delhi: In a significant cybercrime breakthrough, the Delhi Police has dismantled a multi-state cyber syndicate suspected to have links with Chinese nationals, which allegedly defrauded a senior citizen of more than ₹33 lakh through a sophisticated online investment scam. Authorities said the case underscores the increasing complexity of digital frauds and the transnational dimension of cybercrime.

The complaint was filed by a 61-year-old victim, who alleged that he had been cheated in a fraudulent online investment scheme. Police officials said the fraud involved intricate financial maneuvers designed to obscure the money trail. “Technical analysis revealed that the funds had been routed through multiple layers of beneficiary accounts, eventually landing in the bank accounts of a fictitious private limited company,” a senior police officer explained.

Arrests and Modus Operandi

Investigators identified two individuals linked to the sham firm: Shivam Singh from Faizabad, Uttar Pradesh, and Lakshay, a resident of Delhi. Lakshay was apprehended on November 19. During interrogation, he confessed that he had opened a company account under instructions from his co-accused, Shubham, and others. He revealed that he was responsible for creating bank accounts, procuring SIM cards, and handing over bank kits, all in exchange for a monthly payment of ₹20,000.

The hunt for Shubham, who kept switching SIM cards to avoid detection, involved extensive raids across Delhi-NCR over several weeks. He was finally arrested in Tilak Nagar on Saturday. During the arrest, authorities recovered a laptop, two mobile phones, five chequebooks, and six debit cards from his possession.

Shubham, during questioning, disclosed the syndicate’s deeper financial network, which included multiple shell companies spread across various states. He also revealed a cryptocurrency angle: the syndicate had been receiving USDT (Tether, a dollar-pegged cryptocurrency) and selling it to a Chinese handler, creating a repeated cycle of money laundering.

Sophisticated Financial Network

USDT, a stablecoin pegged 1:1 to the US dollar, was central to the syndicate’s operations. The accused exploited the cryptocurrency to mask the flow of funds across borders, complicating the audit trail. According to police, Shubham destroyed cheque books and broke the SIM card registered in the company’s name after learning about Lakshay’s arrest, indicating an attempt to erase evidence.

“The syndicate employed a multi-layered structure, including shell companies, bank accounts in various states, and digital wallets, to ensure the scam remained opaque and difficult to trace. The use of cryptocurrency added an additional layer of complexity,” said the officer.

Authorities noted that the case reflects the growing sophistication of cybercrime syndicates operating in India. Such groups are increasingly leveraging digital financial instruments and international networks to execute high-value scams, often targeting senior citizens and professionals who are less familiar with online investment schemes.

Next Steps

The police said further investigation is underway to unravel the full extent of the syndicate’s operations, identify other victims, and trace additional financial links. They are also working to ascertain whether the Chinese handler identified by Shubham had ties to larger cybercrime networks.

This operation is being hailed as a major achievement for Delhi Police’s cybercrime unit, as it showcases the importance of coordinated intelligence, forensic analysis, and sustained field operations to tackle complex online frauds. Authorities stressed that citizens should exercise caution when investing in online schemes, particularly those promising unusually high returns, and always verify the credentials of companies and agents.

“The arrest of Shubham and his associates not only recovers crucial digital and financial evidence but also sends a strong message that the law will catch up with cybercriminals, even those attempting to exploit international connections,” the officer added.

As the investigation continues, police have urged anyone who may have fallen victim to similar online investment scams to come forward. Authorities emphasized that early reporting of frauds and digital vigilance can significantly aid in tracing and preventing financial crimes of this nature.

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