Delhi Police Bust Multi-State Cyber Fraud Syndicate With Suspected Chinese Crypto Links
Delhi Police have dismantled a sophisticated multi-state cyber fraud syndicate with alleged connections to Chinese handlers, uncovering an elaborate network of shell companies, forged identities and cryptocurrency-based money laundering operations that siphoned millions from Indian victims.
The investigation, which began with a complaint from a senior citizen cheated of ₹33.10 lakh in an online investment scam, revealed how stolen funds were layered through paper companies before being converted into digital assets and sent overseas, according to police records and forensic analysis reviewed by investigators.
Background and Context
The case highlights the evolving nature of cyber fraud in India, where traditional financial scams now converge with blockchain technology to create what law enforcement describes as "hybrid criminal enterprises." The operation came to light in late 2025 when the Delhi Police Crime Branch initiated a technical and financial probe after receiving the initial complaint.
According to investigators, the syndicate employed a multi-layered approach to obscuring the origins of stolen funds, utilizing a complex web of corporate structures and cryptocurrency exchanges. The scale of the operation suggests a coordinated effort with cross-border coordination, police officials stated during press briefings.
Key Figures and Entities
Central to the investigation was BELCREST India Pvt Ltd, a shell company that police say existed solely on paper as a money laundering conduit. Court documents show that ₹10.38 lakh from the initial complainant passed through BELCREST-linked accounts, despite the firm having no legitimate business operations.
The first arrest came on November 19 when Delhi resident Lakshay was taken into custody. According to police statements, he allegedly opened BELCREST using forged credentials and provided bank kits and SIM cards to the syndicate in exchange for ₹20,000 monthly payments. His interrogation led investigators to identify Shubham as a key operator coordinating account usage and fund movement.
Shubham was apprehended on December 6 in Tilak Nagar after weeks of surveillance by a special team led by Inspector Ashok, SI Bhagyashri and HC Dinesh. Police recovered one laptop, two mobile phones, five cheque books and six debit cards from his possession.
Legal and Financial Mechanisms
The laundering operation employed what investigators described as a "circular flow" system. According to police disclosures during questioning, stolen funds passed through multiple shell-company accounts including CSP24SEVEN Technologies, Levin Fintech, EKO India, Rinova Pvt Ltd, Money Wave Pvt Ltd, Easy Mudra Pvt Ltd and Lavi Software & Technology Pvt Ltd.
The money was then converted into USDT (Tether cryptocurrency) and repeatedly sold to an entity identified as "Kool Pay," which police believe is controlled by Chinese operators. This conversion to digital assets allowed for rapid cross-border transfers while complicating traditional financial tracking methods.
Following Lakshay's arrest, investigators determined that Shubham attempted to destroy evidence by snapping SIM cards linked to BELCREST and destroying associated cheque books. Cyber forensic teams are now analyzing the recovered mobile phone for digital footprints, wallet links and communication logs that may lead to the foreign handlers.
International Implications and Policy Response
The case underscores significant challenges in policing transnational cybercrime, particularly as criminal enterprises increasingly exploit regulatory gaps between traditional financial systems and emerging cryptocurrency markets. Police officials described the operation as "organised financial crime with international linkages" that requires enhanced inter-agency coordination and cross-border cooperation.
Law enforcement authorities have warned that such syndicates represent an industrial-scale evolution of cyber fraud, combining domestic shell firms with sophisticated crypto laundering networks to evade detection. The Crime Branch confirmed that cryptocurrency transaction trails are under analysis and that additional arrests are expected as the probe expands to examine foreign coordination links.
The investigation highlights growing concerns among Indian regulators about the intersection of cybercrime and digital assets, particularly as the country faces what officials describe as "a new era of digital regulation." Authorities have urged citizens to exercise caution with online investment schemes and to report suspected fraud immediately, noting that delayed reporting significantly complicates fund recovery efforts.
Sources
This report draws on official statements from the Delhi Police Crime Branch, court documents related to the arrests of Lakshay and Shubham, and police forensic analyses of financial transactions and digital evidence. The investigation remains ongoing with authorities continuing to examine cryptocurrency trails and international connections.
