India’s Central Bureau of Investigation (CBI), acting on a tip-off by the U.S. Federal Bureau of Investigation (FBI), has dismantled a virtual asset and bullion-supported cybercrime network in the country. Since 2022, the network has been perpetrating a variety of cybercrimes, such as fraud, extortion, and money laundering, against victims in many countries.
A key member of the cybercrime syndicate, identified as Vishnu Rathi, was arrested from Mumbai at the end of the operation. The CBI conducted a lot of investigations and raids before they caught Rathi. The raids uncovered significant evidence of the network’s activities, including 57 gold bars, Rs 16 lakh ($19074.42 approx) in cash, mobiles and laptops used to manage the cryptocurrencies, details of bank lockers, documents and other incriminating material used in the cybercrime.
Modus Operandi of the Cybercrime Network
The cybercrime syndicate employed a set modus operandi to target victims. They would frequently employ social engineering or phishing tactics to gain unauthorized access to the bank accounts and computers of their victims. After gaining access, the syndicate would manipulate victims into believing that their accounts had been compromised and would require urgent attention.
The perpetrators would then convince victims to transfer funds to the syndicate’s cryptocurrency wallets, claiming it was necessary to protect their money. In one instance, the syndicate successfully defrauded a woman in the U.S. out of USD 453,953 (approximately Rs 3.81 crore).
CBI’s Investigation and Raids
The woman, who was defrauded, filed a complaint to the FBI. The FBI and the CBI collaborated on an operation which was facilitated through Interpol channels. The Indian agency then launched its investigation into the cybercrime network.
The CBI’s International Operations Division filed a case against Rathi and his associates on September 9, 2024, initiating an extensive investigation into the syndicate’s activities.
A vast network of financial transactions involving virtual assets and bullion was uncovered during raids conducted at multiple locations in Mumbai and Kolkata on September 12 and 13 that were linked to Rathi.
The gold bars, cash, and electronics that were seized provided crucial evidence of the network’s operations. Rathi has been charged under Indian Penal Code (IPC) Sections 120-B (imprisonment up to six months or fine or both), 420 (cheating and dishonestly inducing someone to deliver property), and IT Act Sec. 66D and 75 (cheating by impersonation using a computer or communication device). Further investigations are underway to identify other victims and trace the proceeds of the crimes.
The CBI’s investigation is ongoing, and further arrests and prosecutions are expected. The agency is working to identify additional victims of the cybercrime network and trace the flow of stolen funds.