India Freezes Foreign Deposit Worth IDR 14 Billion, Allegedly Related To Crypto Fraud Network

JAKARTA - India's Directorate of Law Enforcement (ED) recently succeeded in uncovering a crypto fraud network that has targeted foreign nationals with sophisticated and well-organized operating methods. In a well-coordinated operation, ED arrested the perpetrator who had persuaded the victim to transfer US$40.000 (approximately IDR 6.4 billion) funds to a crypto account created via illegal long-distance access.

The investigation conducted by ED led to the discovery of significant digital evidence, freezing fixed deposits, and confiscation of jewelry related to this case. This ongoing investigation shows the seriousness of Indian authorities in eradicating cybercrime and protecting citizens' rights.

According to BitcoinNews information, last Friday, ED announced the results of a search operation conducted on Prafful Gupta and his colleagues at various locations in Delhi, Haryana, and Kanpur. The investigation stems from the First Information Report (FIR) filed by the Central Indian Bureau of Investigation (CBI) against Gupta and his friends. The FIR lists names such as Prafful Gupta, Sarita Gupta, Kunal Almadi, Gaurav Pahwa, Rishabh Dixit, and several others who have not been identified.

With better financial security promises, the suspects managed to convince the victim to transfer large funds to the crypto accounts they control. They use illegal long-distance access to create accounts on behalf of victims, using cell phone numbers and email addresses of victims without permission. Transferred funds are then converted into crypto and disseminated to various parties involved in this network.

ED found that the crypto funds were transferred to Prafful Gupta and his mother, Sarita Gupta, before being sold. The proceeds from these sales were later transferred to fake entities in India and distributed to thousands of accounts in falsified KYC details. Some of the funds even flowed to a fintech company in Gurgaon, which allegedly helped in money laundering without conducting adequate KYC checks.

In the search operation carried out, ED managed to confiscate digital evidence, freeze fixed deposits worth 7.25 Rupees (around 867,825 US Dollars or Rp14 billion), and confiscated 35 Rupee chip jewelry (about 41,895 US Dollars or Rp678 million). This ongoing investigation is expected to open up more similar fraud networks and provide better protection for citizens from digital fraud threats.