Lucknow Police Busts Crypto Trading Gang, Seizes Nearly Rs 80 Lakh

Strategic Insights -

The Lucknow Police, in a significant crackdown, have arrested eight individuals involved in a massive digital financial fraud worth nearly Rs 80 lakh through illegal 'crypto trading' of USDT (Tether) using Telegram channels controlled by Chinese handlers. The gang operated a well-organized racket involving foreign handlers, mule bank accounts, and untraceable crypto wallets, recruiting local Indian account holders on a commission basis to receive high-value deposits via NEFT, RTGS, or IMPS, which were then withdrawn in cash and handed over to underground crypto brokers. The arrested individuals, including Satyam Tiwari, Diwakar Vikram Singh, and Mohd. Shad, failed to produce exchange records, GST documents, or wallet KYC details during police interrogation.

Key Takeaways:

  • The gang, operating for two months, funneled Rs 75-80 lakh through fake 'crypto trading' deals without using any legitimate exchange.
  • Transactions were conducted via Telegram channels controlled by Chinese handlers, who used the TRC-20 network to bypass legal scrutiny.
  • The gang recruited local Indian account holders on a commission basis to receive high-value deposits via NEFT, RTGS, or IMPS.
  • The accused individuals claimed to be 'crypto traders' but failed to produce any exchange records, GST documents, or wallet KYC details.
  • The investigation revealed that the wallets used for money laundering operate outside Indian jurisdiction and cannot be traced easily.
  • The arrested individuals have been identified as Satyam Tiwari, Diwakar Vikram Singh, Saksham Tiwari, Vinod Kumar, Krish Shukla, Mohd. Shad, Laiq Ahmed, and Manish Jaiswal.
  • Police recovered 16 mobile phones, 2 laptops, 1 tablet, Rs 1.85 lakh in cash, 3 cheque books, a passbook, and 4 four-wheelers from the accused.

Statistics:

  • The gang funneled Rs 75-80 lakh through fake 'crypto trading' deals in the past two months.
  • Rs 1.85 lakh in cash was recovered from the accused.
  • 16 mobile phones, 2 laptops, 1 tablet, 3 cheque books, and a passbook were also seized by the police.
  • Four-four wheelers were recovered from the accused, while 16 mobile phones, 2 laptops, 1 tablet, Rs 1.85 lakh in cash, 3 cheque books, and a passbook are still in the custody of the Lucknow Police.

Sources:

  • "Lucknow Police Busts Crypto Trading Gang, Seizes Nearly Rs 80 Lakh." HT Digital Content Services with permission from HT Lucknow.