CBI raids 7 locations, arrests 5 persons in sophisticated cyber fraud

New Delhi: The Central Bureau of Investigation (CBI) revealed a sophisticated and extensive international cyber fraud worth hundreds of crores of rupees on Saturday after conducting coordinated searches at seven locations in the national capital region, Hyderabad and Bengaluru, on Friday. The CBI also arrested five people in connection with the investigation into the HPZ cryptocurrency token fraud.

 According to the CBI, its most recent raids are a component of its ongoing anti-cybercrime Operation Chakra-V.
In the past, the Enforcement Directorate (ED) looked into the HPZ Token App.  In 2024, it submitted a charge sheet under the Prevention of Money Laundering Act (PMLA) that included 299 accused individuals and businesses, including 76 Chinese-controlled entities.

According to the CBI, its most recent searches are a part of its ongoing Operation Chakra-V against cybercrimes, which has been targeting financial frauds, illicit cryptocurrency exchanges, online gaming betting organizations, and cybercriminals for the past six-seven months.

 According to a spokeswoman for the CBI, this case has been filed under the information technology act's criminal conspiracy, impersonation, fraud, and offenses section. It concerns a complex criminal conspiracy that was planned by foreign-based masterminds working in concert with Indian citizens.

"Organized cyber frauds were committed across India in the guise of loan, job, investment, and cryptocurrency schemes between 2021 and 2023," the CBI official said.

 Numerous shell corporations were established in order to open mule bank accounts, which helped to facilitate these scams.  The spokesman continued in the statement, "The money obtained from victims was transferred through these accounts, changed into cryptocurrency, and then sent outside of India via intricate financial layering and cryptocurrency conversion routes."

 Several shell companies were set up in India at the request of foreign criminals, according to investigations.  In order to gather and distribute the public cash, these businesses were integrated into a number of fintech and payment aggregator systems, according to the spokeswoman.

In order to hide the proceeds of crime, the statement further stated, "the collected funds were consolidated, converted into crypto currencies, and transferred to various crypto wallets, eventually being remitted across borders."

 Five suspects have been taken into custody for their direct role in carrying out the fraud after Friday's raids.  The agency, however, withheld their names.

 More research is being done in order to follow the cross-border cash trails, find additional people and organizations implicated, and determine the complete scope of the plot.  Through persistent intelligence-led operations, interagency collaboration, and the application of cutting-edge digital forensics to disrupt intricate multinational fraud networks, CBI is steadfast in its commitment to countering cyber-enabled financial crimes, the agency stated.

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