Key Points

The investigation has uncovered that foreign-based masterminds orchestrated the conspiracy in collusion with Indians, primarily by incorporating several shell entities in India. These companies were subsequently onboarded onto various fintech and payment aggregator platforms to illegally collect public funds.

The collected funds were consolidated, converted into cryptocurrencies, and moved through multiple crypto wallets before being transferred across borders to disguise the proceeds of crime, it said.

"The Central Bureau of Investigation (CBI), as part of its ongoing Operation Chakra-V against cybercrimes, has carried out searches in the HPZ Crypto Currency Token Fraud case, exposing a sophisticated and large-scale transnational cyber fraud running into hundreds of crores of rupees," the statement said.

"On October 3, coordinated search operations were conducted at seven locations across Delhi NCR, Hyderabad, and Bengaluru, leading to the recovery of incriminating digital evidence and financial records. The case, registered under criminal conspiracy, impersonation, and fraud and offences under the Information Technology Act, pertains to an elaborate criminal conspiracy orchestrated by foreign-based masterminds in collusion with Indian nationals," the CBI stated.

The agency said that between 2021 and 2023, organised cyber frauds were carried out across India under the guise of loan, job, investment, and cryptocurrency schemes.

“These frauds were facilitated through the creation of multiple shell companies, which were used to open mule bank accounts. The proceeds collected from victims were routed through these accounts, converted into cryptocurrencies, and subsequently transferred outside India through complex financial layering and crypto conversion routes," the CBI stated.

The CBI has arrested five people for their alleged role in executing the fraud, and they are being produced before the competent court.

Further investigation is underway to trace cross-border financial trails, identify other conspirators, and expose the full extent of the racket.

The agency said it remains committed to tackling cyber-enabled financial crimes through intelligence-led operations, inter-agency coordination, and advanced digital forensics to counter complex transnational fraud networks.

- IANS