Ten Arrested in Chandigarh for Renting Bank Accounts to Cyber Fraud Networks

Chandigarh Police have arrested 10 individuals accused of renting their bank accounts to cyber fraudsters, facilitating illegal transactions through a sophisticated money laundering network that used multiple layers of transfers and cryptocurrency conversion to obscure the origins of stolen funds.

Background and Context

The arrests came under "Operation Mule Hunt," an initiative by the Chandigarh Cyber Crime police station targeting financial intermediaries who enable digital arrest scams and part-time job frauds. The investigation was triggered by information from the I4C (Indian Cybercrime Coordination Centre) portal of the Union Ministry of Home Affairs, which revealed several Chandigarh bank accounts linked to fraud complaints registered across India. These so-called "mule accounts" serve as temporary conduits for fraud proceeds, allowing criminals to distance themselves from illegal transactions while maintaining plausible deniability.

Key Figures and Entities

Among those arrested were Ritik (22) and Rythem (20) from Mauli Jagran, and Akash (25) from Mohali, who confessed to operating mule accounts. Ritik admitted to converting fraudulent transfers into cryptocurrency via the Binance platform before further transfers, while Akash received Rs 10,000 for allowing his account to be used for crypto-related transactions. Additional arrests included Mohamad Danish (22), Charandas (20), Archit (25), Mohammad Toshik (26), Dilpreet Singh (21), Ankit (23), and Rohan Dubey, all of whom admitted to receiving commissions for facilitating illegal transfers and withdrawals. The investigation was led by DSP (Cyber Crime) A Venkatesh, SHO Inspector Eram Rizvi, and SP (Cyber Crime) Geetanjali Khandelwal.

Legal and Financial Mechanisms

The fraud scheme employed classic money laundering techniques with a digital twist. Stolen funds were deposited into the mule accounts, then quickly withdrawn or transferred through multiple layers to complicate tracing. In some cases, the money was converted into cryptocurrency—primarily through Binance— to further obscure the transaction trail. This combination of traditional layering and cryptocurrency conversion creates significant challenges for law enforcement tracking, as it crosses between regulated banking systems and largely unregulated digital asset platforms.

International Implications and Policy Response

This case highlights the growing sophistication of cyber fraud networks and their exploitation of both traditional financial systems and emerging cryptocurrency platforms. The use of "account mules" represents a persistent vulnerability in anti-money laundering frameworks, particularly in jurisdictions with less robust customer due diligence. Indian authorities have intensified efforts through initiatives like the I4C portal to coordinate responses across state lines, but the cross-border nature of cryptocurrency transactions presents ongoing regulatory challenges. The case underscores the need for greater cooperation between banks, crypto exchanges, and law enforcement to identify and intercept suspicious transaction patterns.

Sources

This report is based on official statements from the Chandigarh Police Cyber Crime Cell regarding Operation Mule Hunt, including details from First Information Reports (FIRs) Nos. 11, 12, 13 of 2026 and 109 dated September 8, 2025, registered under sections of the Bharatiya Nyaya Sanhita (BNS) related to organized crime and cheating.