CBI Uncovers ₹1,000 Crore Cross-Border Covid Crypto Fraud Network, Chinese Nationals Detained

During the isolation and economic uncertainty of India’s Covid-19 lockdown, an elaborate cryptocurrency investment scheme quietly gained traction, promising easy profits through digital assets. What appeared to many as a timely financial opportunity has now been exposed as a sophisticated cross-border cybercrime operation that allegedly siphoned more than ₹1,000 crore out of India.

According to the Central Bureau of Investigation (CBI), the fraud was orchestrated through Shigu Technology Private Limited, a company effectively controlled by Chinese nationals. The firm promoted cryptocurrency-related activities such as bitcoin mining and token-based investments, attracting thousands of Indian investors at a time when traditional income avenues were shrinking.

Investigators say the operation relied on a dense web of more than 150 shell companies, whose bank accounts recorded deposits exceeding ₹1,000 crore within a short span. These entities allegedly existed only on paper, serving as conduits to pool investor funds, disguise their origins and project them as legitimate business revenue.

As the probe expanded, the CBI uncovered links between the crypto scheme and a wider international cybercrime ecosystem. Officials believe the same network later diversified into fake loan apps, fraudulent online investments and bogus job offers, exploiting India’s rapidly expanding digital payments infrastructure. Early investors were reportedly paid small returns to build credibility, after which larger sums were solicited and converted into cryptocurrency before being transferred overseas.

The charge sheet identifies Wan Jun, a Chinese national, as a key accused who allegedly operated in India through front companies while holding directorial roles in associate entities. With the help of local facilitators, including an accused identified as Dantes, multiple shell firms were incorporated to layer transactions and evade detection by banks and regulators.

In its latest action, the CBI has filed a charge sheet against 30 accused — including two Chinese nationals and three companies — before a special court in Delhi. Several suspects are believed to be outside India, and parallel proceedings by the Enforcement Directorate have already resulted in the freezing of ₹91.6 crore linked to the alleged proceeds of crime.

Experts say the case highlights how cross-border financial crime networks exploit regulatory asymmetries and corporate structures to move money rapidly across jurisdictions. As global enforcement agencies tighten scrutiny, compliance professionals stress that transparent corporate structuring and jurisdiction-specific regulations are critical — particularly for legitimate entrepreneurs exploring international expansion or business setup in dubai where regulatory clarity and compliance play a decisive role.