The Gujarat CID has arrested a 25-year-old man from Assam for allegedly operating a large cybercrime and money-laundering network linked to 1,090 cases involving Rs. 1,071.5 crore across India.
According to news agency ANI, Rafiqul Alam was arrested by the Gujarat CID cyber cell in Barpeta following a technical investigation into an alleged international fraud network connected with China-based criminals.
Investigators allege that Alam played a central role in moving proceeds from digital arrest scams and other cyber frauds through thousands of bank accounts before converting part of the money into cryptocurrency.
Funds Routed Through More Than 1,700 Bank Accounts
According to the Gandhinagar-based Cyber Centre of Excellence, or CCE, the fraud proceeds were broken into smaller transactions and moved rapidly across 1,754 bank accounts to avoid attracting attention from financial surveillance systems. Police separately cited 1,758 accounts during the investigation.
“The money received by the accused through digital arrest or cyber frauds was split and transferred to 1,754 bank accounts across India within an hour by converting large amounts into small amounts to evade the attention of financial surveillance agencies,” the CCE told ANI.
Authorities allege that the funds were subsequently converted into cryptocurrency and transferred to entities linked to China.
23 Crypto Wallets Traced on Mobile Phones
Investigators found 23 cryptocurrency wallets on Alam’s mobile devices. According to the CCE, approximately Rs. 16 crore had moved through those wallets.
“The accused exchanged financial information (scanner, user ID, password, crypto wallet, modus operandi of the crime, etc.) directly with Chinese criminals through WhatsApp and Telegram,” the CCE said.
The investigation also uncovered alleged illegal crypto trading conducted through an application referred to as “chip seller.” Police said gaming-account transactions were also found on the accused’s devices.
Three-Day Surveillance Led to Arrest
The arrest followed an undercover operation in Assam.
“Based on technical analysis and the victims’ statement, a team from CCE visited Barpeta city and conducted a three-day reconnaissance of the house of the main money launderer in disguise and arrested him along with his technical gadgets,” the agency said.
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Digital Arrest Cases Also Prevented
The wider investigation also helped authorities intervene in 10 suspected digital arrest scams involving victims across Gujarat, Odisha, Chhattisgarh and Maharashtra.
In one Ahmedabad case, a senior citizen was allegedly threatened with being implicated in a child pornography case unless he paid Rs. 20 lakh. In Surat, another victim was threatened with Enforcement Directorate action and eventually sold a shop for Rs. 20 lakh after scammers demanded Rs. 60 lakh.
The case highlights how cybercrime networks can combine mule bank accounts, encrypted messaging platforms and cryptocurrency to move proceeds rapidly across jurisdictions, while also showing how transaction tracing can help investigators connect digital assets with broader fraud networks.
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