Delhi Police Bust Crypto-Laundering Network Using Chinese App

Delhi Police Uncover Crypto-Laundering Network Using Chinese-Controlled App; Two Arrested

The Delhi Police Crime Branch has unearthed a sophisticated crypto-laundering network allegedly responsible for routing cyber fraud proceeds through fake company accounts and converting them into cryptocurrency via a China-controlled mobile application. Two suspects have been arrested so far, and investigators believe the operation spans multiple states with links to foreign handlers.

Victim Duped of ₹33.10 Lakh Through Fake Stock Trading Scheme

The case originated after an elderly man filed an online complaint stating he lost ₹33.10 lakh in a fraudulent stock investment scheme. The victim had been promised high returns but instead saw his money transferred across several bank accounts operated under fabricated company identities. A team led by Inspector Ashok Kumar began tracing the money trail.

Fake Company Account in Ayodhya Leads to First Arrest

During the investigation, police learned that ₹10.38 lakh of the stolen amount had been diverted into the account of a fictitious company called Belcrest. The account holder, Lakshya Singh from Ayodhya, was arrested on November 19.
Singh admitted he had opened the account using forged documents supplied by another accused, Shubham, and accepted ₹20,000 in return for renting out his account. He also claimed he was unaware of the origins or purpose of the deposited funds.

Mastermind Identified Through Social Media IP Trail

Following Singh’s arrest, officers pursued the elusive Shubham, who frequently changed devices and phone numbers to evade law enforcement. Crime Branch teams eventually tracked him using the IP address associated with his Instagram account, which led them to a new mobile number.
Shubham was arrested in the Tilak Nagar area and later confessed he was acting under the instructions of an overseas handler who coordinated the flow of illicit funds.

Chinese-Controlled App Used to Convert Fraud Money Into Cryptocurrency

Police found that the gang used a China-controlled application named “Cool” to convert the fraudulently acquired money into cryptocurrency. The funds were first scattered across several Indian bank accounts before being moved into digital assets through the app.
Shubham reportedly received a commission in cryptocurrency for facilitating these transactions. Investigators said the group used the same app to sell digital assets abroad, making the financial trail extremely difficult to track.

Attempts to Destroy Evidence Fail as Police Recover Key Device

After learning of Singh’s arrest, Shubham allegedly attempted to destroy evidence by burning a cheque book and SIM card linked to the Belcrest account. Despite this, police managed to recover his mobile phone, which contained critical data, including chat records with the foreign handler.
Police have so far identified six additional fake companies connected to the same laundering network and are working to trace more members involved in the scheme.

Cases like this underline the growing complexity of financial fraud and the importance of structured oversight in business operations across India. For companies seeking stronger internal controls or considering overseas expansion - especially those evaluating business setup in Dubai - reliable financial processes and well-managed records play a vital role in long-term stability. Shunyatax Global continues to support organizations aiming to strengthen governance and ensure compliance in an increasingly digital economy.