Rs 712-cr 'Chinese investment fraud' busted in Hyderabad, nine arrested

In a significant breakthrough, the Hyderabad Police have successfully busted a colossal investment fraud operation, arresting nine individuals and freezing assets worth over Rs 10.53 crore. The fraudulent scheme, orchestrated by Chinese operators based in Dubai, is estimated to have siphoned off a staggering Rs 712 crore from unsuspecting investors across the country.

According to a PTI report, some of the crypto wallet transactions in the fraud were found to have linkages with Hezbollah wallet (labelled as wallet belonging to terror financing module). The investigation was initiated following a complaint lodged by a Hyderabad resident who claimed to have been duped of Rs 28 lakh through a part-time job of ‘rate and review’.

The complainant, who wishes to remain anonymous, was offered a seemingly simple part-time job via a messaging app. The job involved rating and reviewing certain tasks on a specific website. Trusting the authenticity of the offer, he registered on the said website, eager to earn some extra income. The initial task seemed straightforward enough. He was asked to give a five-star rating to a particular service, with a small investment of Rs 1,000. To his delight, he earned a profit of Rs 866, which further solidified his belief in the legitimacy of the job.

Emboldened by this initial success, he decided to invest more. After investing Rs 25,000, he saw his profits soar to Rs 20,000. However, when he attempted to withdraw his earnings, he encountered his first red flag. The website denied his withdrawal request, offering vague reasons for the denial. He was further made to invest money and he lost Rs 28 lakh in total.

The report further stated that the victim’s money was sent to six accounts and from thereon the money was transferred to several Indian bank accounts and finally to Dubai. The fraudulent money was also used to purchase cryptocurrency. An Ahmedabad resident has also been implicated in the complex, multilayered fraud scheme, according to the PTI report. The individual, who is among those arrested in connection with the case, was found to be in cahoots with Chinese citizens, playing a pivotal role in the orchestration of this elaborate scam.

The other accounts through which the fraudulent money has been converted to the United States Department of Treasury (USDT cryptocurrency) valued at Rs 584 crore.

(With inputs from PTI)

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