In Lucknow, Uttar Pradesh, police have uncovered a large cyber fraud network involving the illicit use of bank accounts by young individuals for cryptocurrency and fake online investment schemes. Several people, including a 24-year-old restaurant waiter named Ajay, have been arrested in connection with this racket.

Ajay revealed during interrogation that a crypto trader paid him Rs 20,000 to use his bank account for a single day’s illegal transactions. Following the trader’s instructions, Ajay received lakhs of rupees in his account, which he then handed over to the gang members. Eventually, Ajay became a government witness and disclosed that the network operates internationally, involving multiple mule accounts.

The police investigation revealed that the group targets vulnerable youth, including boys working in small shops and restaurants as well as some college students. They are paid between Rs 10,000 to Rs 30,000 to let their bank accounts be used for laundering money.

The money laundering operations are coordinated through encrypted Telegram channels, reportedly operated by Chinese entities or their proxies. Local agents collect bank information and documents, and on the days of large transactions such as NEFT, RTGS, or IMPS, they escort the mule account holders to banks to withdraw cash. This cash is then given to crypto brokers who convert it into USDT (a cryptocurrency) through decentralized, non-KYC wallets, with Binance being the most used platform.

In the last two months alone, the Lucknow police have detected money laundering amounts ranging from ₹5 lakh to ₹5 crore routed through these accounts, with the converted cryptocurrency sent abroad.

Investigations are ongoing, with over 60 youths from various parts of Lucknow—including both old city areas like Chowk and Indira Nagar, as well as newer localities like Sushant Golf City and suburban zones—being questioned for their involvement. Despite multiple busts, police believe the scope of this cyber fraud network is still much larger and are continuing their efforts to dismantle it fully.