Chinese-linked investment fraud syndicate busted, 2 held by Delhi Police

The Intelligence Fusion and Strategic Operations (IFSO) Unit of Delhi Police's Special Cell has busted an international investment fraud syndicate operated through mule bank accounts and cryptocurrency payments and arrested two individuals in which one of them linked to Chinese cyber networks.

According to Delhi Police release, the syndicate came to light after a Delhi resident, Ashok Kumar, lodged a complaint on April 2, 2025, alleging he was defrauded of Rs 64.75 lakh.

The victim was lured into investing in fake IPOs and stock trading via a bogus platform, Business Catalyst Market Ltd. He was manipulated into transferring funds to five different accounts, the Delhi Police said.

Following the complaint, a case was registered under Sections 318(4), 319(2), and 61(2) of the Bharatiya Nyaya Sanhita (BNS).

Vaddoriya Kewin Mukeshbhai (25), a resident of Surat, Gujarat, a BBA second-year student, was previously arrested in a digital arrest scam in Maharashtra.

Abdul Barik (32), a resident of Roorkee, with a prior cybercrime case against him responded to the advertisements offering commissions for providing bank accounts and SIM cards.

According to DCP IFSO Dr Hemant Tiwari, IPS, the arrested accused were reportedly receiving commissions in USDT, a stable cryptocurrency, through foreign wallets on Binance, a global crypto exchange. Six mobile phones loaded with Chinese apps and online wallets used for cyber fraud were seized.

Police say the investigation is ongoing to identify more linked accounts and collaborators in the country and abroad.

On May 15, the Delhi Police IFSO Unit of Special Cell busted a module responsible for providing, handling, and using mule/fake bank accounts in connection with the IVR scam (Digital Arrest scam). The accused were operating mule accounts to siphon off the proceeds of crime abroad.

According to a release, Rs 2.2 crores, three mobile phones, SIM cards, and other digital documents were recovered and restored to the victim.

According to Delhi Police, on March 15, 2025, a complaint was filed with the Intelligence Fusion & Strategic Operations (IFSO) Unit of the Special Cell by a 92-year-old retired surgeon. The complainant alleged that on March 12, 2025; he received multiple unsolicited calls from various numbers. The callers impersonated themselves as the officials from the Telecom Regulatory Authority of India (TRAI) and the Maharashtra Police, falsely claiming that several First Information Reports (FIRs) had been registered against the victim.