India Arrests 10 for Crypto Laundering on Behalf of Chinese Fraud Gang
Indian Cyber Crime authorities in Uttar Pradesh have arrested 10 individuals across Lucknow, Raebareli and Gonda for laundering roughly ₹75–80 lakh (about $86k–$92k) of fraud proceeds on behalf of a Chinese cyber fraud gang. The suspects received illicit funds in local bank accounts, purchased digital assets, and transferred the crypto back to the gang after deducting commissions. Two of the accused have turned approvers, while the others are in judicial custody pending trial. This operation follows a recent uptick in investment scams involving digital assets across India. Authorities warn the public to remain vigilant against “too-good-to-be-true” crypto investment offers and continue targeting networks that facilitate cross-border laundering.
Neutral
This enforcement action targets illicit crypto channels rather than mainstream markets, so immediate trading volumes or prices of major cryptocurrencies are unlikely to shift. Crackdowns can boost long-term confidence by highlighting regulatory oversight, but in the short term, they often have minimal impact on market direction. Historical precedents—such as U.S. and South Korean law enforcement actions—have shown that while individual illicit platforms suffer, overall market sentiment remains largely stable unless major exchanges or large volumes are affected.