Rs 547 Crore Cyber Fraud Ring Dismantled in Telangana, Funds Routed Through Crypto to Cambodia

Police in Telangana have dismantled an international cyber fraud operation that laundered Rs 547 crore through a network of mule bank accounts before converting the funds to cryptocurrency and transferring them overseas, primarily to Cambodia. The crackdown resulted in the arrest of 18 alleged account holders, while four principal organizers remain at large, continuing what investigators describe as one of the region's most sophisticated financial crime operations active since 2022.

Background and Context

The case highlights the growing challenge of cyber-enabled financial crime in India, where fraudsters increasingly exploit young job seekers through elaborate employment scams. According to police statements, the operation began in 2022, coinciding with a surge in online fraud across the country. The Telangana incident represents a particularly large-scale example of how traditional bank fraud has evolved into complex, cross-border operations utilizing cryptocurrency to circumvent financial controls and regulatory oversight.

Key Figures and Entities

Investigators have identified four principal suspects who allegedly orchestrated the scheme: P Manoj Kalyan, U Vikas Chowdary, Bhanu Priya, and M Satish. According to police, Kalyan served as the central figure, with his personal current account receiving approximately Rs 114 crore since 2022. Court documents show that Rs 45 crore flowed through accounts controlled by his wife Bhanu Priya, while his brother-in-law M Satish's account processed Rs 135 crore. An additional Rs 81 crore was routed through an account belonging to an individual identified as Nagalakshmi before being diverted further. Notably, Kalyan had previously surfaced in a separate job fraud case investigated by Cyberabad cyber crime police, though he avoided arrest at that time, according to Times of India reporting.

Legal and Financial Mechanisms

The operation employed a multi-layered laundering structure designed to obscure the origins and destinations of illicit funds. According to police, the process began with fraudulent activities targeting victims across various online scams. The proceeds were initially deposited into a network of "mule accounts"—bank accounts belonging to recruited individuals who were reportedly paid for their participation. These funds were then consolidated into accounts controlled by the principal organizers. The critical final step involved converting the accumulated rupee balances into cryptocurrency, which was then transferred to handlers based in Cambodia and other foreign jurisdictions, effectively removing the money from India's regulated financial system.

International Implications and Policy Response

The case underscores significant vulnerabilities in international financial crime prevention, particularly concerning the intersection of traditional banking systems and unregulated cryptocurrency exchanges. The transfer of hundreds of crores to Cambodia highlights how fraudsters exploit jurisdictions with weaker regulatory frameworks. The operation's success since 2022 suggests ongoing gaps in cross-border cooperation and information sharing between Indian authorities and international counterparts. Financial regulators have increasingly raised concerns about cryptocurrency's role in facilitating money laundering, though comprehensive regulation remains fragmented across jurisdictions.

Sources

This report draws on police statements from the Khammam commissionerate, court filings related to the money laundering investigation, and news reporting published between 2022 and 2026. Financial transaction details and suspect information were provided through official law enforcement channels.