Rs 547 crore cyber fraud ring busted in Telangana; crypto used to send money to Cambodia

Cyber fraud

• Khammam police arrest 18 linked to Rs 547 crore laundering racket
• Four prime suspects remain at large; funds converted to crypto and sent abroad
• Mule accounts used to launder money from cyber fraud victims since 2022

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In a significant crackdown on cyber-enabled financial crime in Telangana, the Khammam police on Sunday announced the arrest of 18 individuals alleged to be “mule account” holders. They are linked to a sophisticated international racket accused of laundering and diverting a staggering Rs 547 crore overseas, authorities stated.

The investigation has identified four prime suspects still at large: P Manoj Kalyan, U Vikas Chowdary, Bhanu Priya and M Satish. According to police, this group allegedly orchestrated the scheme by recruiting young people under the false pretence of providing employment, TOI reported.

The police commissioner explained that the mule accounts were used to launder money from cyber fraud victims, adding that the accused had paid the account holders for their involvement.

The police detailed a complex laundering operation. The fugitive accused are said to have supplied these acquired Indian bank accounts to cyber fraudsters operating from Cambodia and other foreign countries. Illicit funds from various online scams were first channelled into the network of mule accounts.

From there, the money was consolidated into the personal bank accounts of the main accused. The final, crucial step, police said, involved converting the massive sums into cryptocurrency, which was then sent to handlers abroad, effectively moving the proceeds of crime out of India’s financial system.

The scale of the transactions is immense. Police evidence indicates that since 2022, approximately Rs 114 crore was credited to Kalyan’s personal current account. Similarly, Rs 45 crore flowed into accounts held by his wife, Bhanu Priya and Rs 135 crore was credited to his brother-in-law, M Satish’s account. Another Rs 81 crore was processed through an account belonging to an individual named Nagalakshmi before being diverted.

This is not the first time Kalyan has been implicated in such activities. TOI reported that his role previously surfaced in a separate job fraud case investigated by the Cyberabad cyber crime police, though he was not arrested at that time.

The police have been probing this alleged racket, which they say has been active since 2022. The arrest of the 18 account holders marks a key development, but the manhunt continues for the four alleged masterminds believed to have orchestrated one of the region’s most substantial cyber fraud and money laundering operations.