Hyderabad: Hyderabad Police has successfully dismantled a massive Chinese investment fraud, resulting in the arrest of nine individuals from different locations such as Mumbai, Lucknow, Gujarat, and Hyderabad. These individuals are suspected to have links with fraudsters operating from Dubai and China.
The fraudsters allegedly targeted gullible investors in India and cheated them out of Rs 712 crore, which was then routed to China via Dubai using cryptocurrency as the medium.
During the course of the investigation, the police discovered that a portion of the fraudulent funds was also transferred to a cryptocurrency wallet linked to a terror outfit. Due to the magnitude of the case and the need for a comprehensive probe at a national level, the police are planning to bring it to the attention of the central government.
The police have seized significant evidence, including mobile phones, laptops, SIM cards, debit cards, and documents related to 33 companies involved in the scam. They also found Chinese currency notes and coins, indicating the international nature of the fraud.
The investigation into this investment scam was initiated after a resident of Hyderabad filed a complaint with the Cyber Crime Police, stating that he lost Rs 28 lakh to the fraudsters. The complainant was lured into a part-time job offer through a Telegram app, leading him to register on a website called “https://www.traveling-boost-99.com.”
The victim was enticed to rate and review tasks on the website and was promised profits for his participation. However, when he attempted to withdraw the earnings, he was asked to pay a hefty withdrawal fee. It was later revealed that the money lost by the victim was routed through various accounts, eventually reaching Dubai, where it was used to purchase cryptocurrency.
The investigation exposed the involvement of several individuals operating shell companies and using fake accounts to facilitate the fraud. Additionally, it was revealed that Chinese masterminds were orchestrating the entire scam, targeting victims through Telegram messages.
Prakash Prajapathi, an individual based in Ahmedabad, was found to be coordinating with the Chinese in supplying Indian bank accounts and sharing OTPs for remote access. He had connections with Chinese entities and was transferring the fraudulently gained Indian rupees to cryptocurrency and sending it to China.
The police also discovered Prakash Prajapathi’s involvement in money laundering through hawala transactions, with a portion of his commission being routed back to the account suppliers. Further, cryptocurrency transactions from his wallet were linked to wallets associated with terror financing, adding another layer of complexity to the investigation.
The Hyderabad Police’s Cyber Crimes Unit successfully cracked down on this large-scale Chinese investment fraud, and the nine arrested individuals are now facing legal consequences for their involvement in the scam.
