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Market News

India Digital Arrest Scam Routes ₹10.74 Cr via Crypto Exchanges

An elderly Pune pensioner lost ₹10.74 crore sent in seven transfers after fraudsters posing as TRAI, CBI, and court officials ran a nine-day crypto-linked digital arrest scam using fake video hearings.

Written By:
Dishita Malvania

Reviewed By:
Divya Mistry

Last updated: March 17, 2026 5:23 PM
Published March 5, 2026 12:57 PM
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Last updated: March 17, 2026 5:23 PM
Published March 5, 2026 12:57 PM
India Digital Arrest Scam Routes ₹10.74 Cr via Crypto Exchanges

Key Highlights

  • Pune Cyber Police arrested two suspects in a ₹10.74 crore digital arrest scam targeting an 82-year-old resident in Maharashtra, India.
  • Investigators traced part of the stolen funds through mule bank accounts and cryptocurrency linked to overseas exchanges.
  • Authorities say the case may be tied to a wider cybercrime network as digital arrest scams rise across India.

A major cyber fraud case has surfaced in Pune, a city in Maharashtra state in India, where an 82-year-old resident was cheated of ₹10.74 crore through what police describe as a “digital arrest” scam.

The case shows how fraud networks are increasingly using intimidation, fake legal proceedings, and cryptocurrency channels to move stolen money. Pune Cyber Police have so far arrested two people in connection with the case and managed to freeze a part of the stolen money. 

As per a report by Pune Mirror, during the investigation, officers also found links to several mule bank accounts, a social media influencer, and cryptocurrency transfers that were routed overseas.

Police say the case may not be limited to just these accused. Investigators believe the people involved could be part of a larger cyber fraud network operating across several states. There are also indications that some of the handlers may be based outside India.

Fake officials and a ‘virtual courtroom’

As per the police investigation, the victim, an elderly pensioner living on Bhandarkar Road in Pune, started getting calls from the fraudsters between January 23 and January 31, 2026.

The callers claimed they were officials from the Telecom Regulatory Authority of India (TRAI) and the Central Bureau of Investigation (CBI). At times, they also said they were speaking on behalf of the judiciary. They told the victim that his bank account had been linked to a money-laundering case and warned him that he could be arrested if he did not cooperate.

To make their claims look genuine, the fraudsters even arranged video calls that appeared like court proceedings. During these calls, people posing as a judge and a lawyer spoke to the victim and questioned him. Police said the purpose was to create fear and convince him that the case against him was real.

Police say the elderly man was kept under constant psychological pressure during the nine-day period. Believing the calls were genuine and fearing legal consequences, he transferred his savings—including fixed deposits and money sent by his children from abroad—into several bank accounts provided by the fraudsters.

In total, seven transactions amounting to ₹10.74 crore were carried out before the victim realized something was wrong and approached the police.

Two arrested in the case

Pune Cyber Police arrested two suspects on February 22 after tracing the financial trail and examining ATM surveillance footage.

The arrested individuals have been identified as Harshad Subhash Dhantole (23), a BTech student from Chhatrapati Sambhajinagar who was staying in Karvenagar, and Samarth Suresh Deshmukh (24), an unemployed graduate from the same district who was also living in Pune.

Senior Police Inspector Swapnali Shinde said investigators were able to track the suspects through bank transaction records.

“Through ATM surveillance and bank transaction analysis, we traced portions of the siphoned funds and identified the suspects. An amount of ₹40 lakh has been frozen, and cash of ₹4.78 lakh recovered from their possession.”

Police suspect the two men were part of a group responsible for managing accounts used to receive and withdraw the funds transferred by victims.

Social media influencer under scanner

During the investigation, police also found that a social media influencer from the Marathwada region of Maharashtra may have played a role in the operation.

Officials say the influencer allegedly helped arrange mule bank accounts that were used to receive money from the victim. A portion of the stolen funds was reportedly credited to his account.

Investigators have also questioned the influencer’s girlfriend after some of the money was traced to one of her bank accounts. Police are examining whether the accounts were knowingly used to assist the fraud network.

Authorities believe mule accounts played a key role in the operation by temporarily holding funds before they were moved further through the financial system.

Cryptocurrency used to move the money

Investigators say part of the stolen money was converted into cryptocurrency after being routed through multiple Indian bank accounts.

According to police, the digital assets were then transferred to cryptocurrency exchanges linked to China, making the trail more complex to track.

“Our investigation revealed that the money was moved into cryptocurrency before being transferred to exchanges in China. We are now tracing every link to unravel the full network behind this crime,” Inspector Shinde said.

Officials suspect that at least one person involved in the network may be coordinating with handlers based outside India.

Similar ‘digital arrest’ scams emerging in India

The Pune case comes at a time when law enforcement agencies across India are reporting an increase in similar cyber frauds.

In a recent operation, the Central Bureau of Investigation (CBI) carried out searches across six states in connection with a ₹1.86 crore “digital arrest” fraud involving a senior citizen from Kerala’s Kottayam district.

The investigation led to the arrest of three individuals linked to mule accounts, shell companies, and SIM card networks used to facilitate the fraud. Digital devices, bank records, and SIM cards were seized during searches conducted in multiple cities, including Goa, Bengaluru, Nagpur, Hyderabad, and Delhi.

Officials say the financial trail in that case also showed that part of the stolen money was routed through cryptocurrency to obscure the origin of the funds.

Rising cyber frauds in a digital economy

Incidents like the Pune case show how cybercriminals are changing their methods as India becomes more digitally connected.

With the growing use of online banking, instant payment systems and even cryptocurrency platforms, moving money has become faster and easier. But investigators say the same convenience is also being exploited by organized fraud networks to move stolen funds quickly and make them harder to trace.

So-called “digital arrest” scams usually work by creating fear. Fraudsters pretend to be officials from government agencies or law enforcement bodies and tell victims that their identity, bank accounts or phone numbers are connected to serious crimes. Victims are then pressured to transfer money under the pretext of verification or investigation.

In several cases, scammers keep victims on phone or video calls for long periods, preventing them from contacting family members or checking the claims with real authorities.

Police issue public warning

Police have urged people to stay cautious if they receive calls from anyone claiming to be from government departments or law enforcement agencies. Officials stress that genuine authorities do not demand money over phone calls or video conferences.

Inspector Shinde said legitimate authorities never ask people to transfer money for verification or investigation purposes.

“Fraudsters use staged settings, intimidation and fake legal pressure to isolate victims. No real agency will demand money for verification. Disconnect immediately and verify claims through official channels.”

Authorities are advising people to report suspected cyber fraud immediately through the national cybercrime helpline 1930 or through the government’s online portal cybercrime.gov.in, as quick reporting can sometimes help freeze transactions before funds are withdrawn.

As the investigation into the Pune case continues, police say their focus is now on identifying other members of the network and tracing the full route of the stolen funds.

Also Read: Delhi Gang Busted in India Over Fake USDT Deals, 2 Bikes Seized

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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Dishita Malvania - Senior crypto journalist at The Crypto Times
By Dishita Malvania
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Dishita Malvania is a Crypto Journalist with 3 years of experience covering the evolving landscape of blockchain, Web3, AI, finance, and B2B tech. With a background in Computer Science and Digital Media, she blends technical knowledge with sharp editorial insight. Dishita reports on key developments in the crypto world—including Litecoin, WazirX, Solana, Cardano, and broader blockchain trends—alongside interviews with notable figures in the space. Her work has been referenced by top digital media outlets like Entrepreneur.com, The Independent, The Verge, and Metro.co, especially on trending topics like Elon Musk, memecoins, Trump, and notable rug pulls.
Divya Mistry - Content Editor at The Crypto Times
By Divya Mistry
Follow:
Divya Mistry is a Content Editor with over 9 years of experience in news, PR, marketing, and research. Armed with a Master’s Degree in English Literature from the University of Mumbai, she specializes in crafting and refining long-form content across digital and print platforms. Over the years, Divya has contributed to and shaped content for leading brands across a range of industries, including real estate, healthcare, vertical transport, entertainment, lifestyle, education, EdTech, tech, and finance. Her research work has been featured on platforms like DNA India, Forbes, and Elevator World India. She now brings her editorial and research skills to explore the rapidly evolving world of cryptocurrency.

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