In a breakthrough against organised cyber crime, Rajasthan Cyber Crime Police have arrested the mastermind of an interstate online investment fraud syndicate who has been accused of cheating people across the country of almost ₹500 crore through fake trading and investment schemes.
The accused, identified as **Yuvraj Satish Mudaliar (35)**, was arrested in **Lohgaon in Pune** after the extensive investigation. A production warrant was issued to bring him to Jaipur and he is being questioned by investigators as police probe the entire scope of the nationwide fraud.
Probe Began With ₹16 Lakh Complaint
The investigation was initiated after **Sadharam Chaudhary** filed a complaint at the Rajasthan State Cyber Crime Police Station on **23 February 2024**, in which he alleged he had been cheated of ₹16 lakh.
In the complaint, Chaudhary was added to a WhatsApp group called **"105 IND STOCKS ADV"** where members claimed to offer lucrative online stock market and trading opportunities.
Investigators said because of the high returns it was very enticing for the victim to invest money. After numerous investments, he lost everything.
Investigation Uncovered Nationwide Fraud
In the course of the investigation, cyber police studied WhatsApp chats, bank account details, transaction records and other digital evidence.
It is likely that the complaint was not a case of isolated fraud but part of a much larger cyber fraud operation targeting victims in several states (law enforcement officer).
The syndicate is suspected of cheating investors of nearly **₹500 crore**, making it one of the biggest online investment scams investigated by the Rajasthan Cyber Crime Police, the investigators said.
How the Fraud Worked
Police said the accused and his friends lured victims by advertising the false stock market on social media as well as WhatsApp groups promoting fake stock market and investment opportunities.
In the beginning, investors were encouraged to deposit small amounts and to be shown fake profits or the ability to withdraw limited returns to create trust.
Once victims had invested large sums, the fraudsters allegedly transferred the money out of the accounts, removed victims from the WhatsApp groups, deleted chat histories and severed all communication.
Fake Loan Firms Used to Create Bank Accounts
Mudaliar, during interrogation, revealed that he operated several finance companies under various names including **Grace Finance**, **Positive Balance**, and **Guru Finance**.
According to police, these firms collected documents such as **PAN cards, Aadhaar cards, salary slips and bank statements** from people on the pretext of processing loan applications.
Based on these documents, bank accounts were opened in the names of unsuspecting individuals who were paid around **₹10,000** as commission.
Investigators are saying that the accused kept control of the ATM cards, cheque books and passbooks linked to these accounts and later used them to receive money obtained through cyber fraud.
Hawala and Cryptocurrency Under Scanner
The police also claimed that the fraud proceeds were withdrawn in cash and funneled through **hawala** channels before being transferred into cryptocurrency wallets, including those on the **Binance** platform, in an apparent attempt to conceal the money trail.
The investigators are now looking at digital wallets, cryptocurrency transactions and financial records associated with the accused to trace the flow of money and trace other members of the syndicate.
The cyber police will also investigate the other victims and determine if there are more people or organised networks involved in the alleged ₹500 crore fraud. It is believed that more arrests will be made as the investigation goes on.
