Lucknow Police uncovered a ₹80 lakh crypto fraud and arrested 8 people involved in illegal USDT trading via Telegram.

In a breakthrough against digital fraud, Lucknow Police arrested eight individuals on June 21, 2025, for siphoning off nearly ₹80 lakh through fake USDT (Tether) crypto trading. The racket operated from Lucknow and nearby districts, exploiting loopholes in crypto laws and bank verification systems, as revealed by the Cyber Crime Police.

The accused were part of a well-organised cyber racket that transferred illicit money via anonymous Telegram channels operated by Chinese handlers, according to a press release by the Cyber Crime Police Station, Lucknow.

They used TRC-20 blockchain network wallets, bypassing Indian legal scrutiny by avoiding KYC. Local “mule” accounts were created to receive money via NEFT, RTGS, and IMPS, withdraw the same day and convert into USDT through peer-to-peer crypto brokers.

“These criminals exploited P2P wallets that function without verification, making it nearly impossible to trace funds,” said Inspector Brijesh Kumar Yadav, Cyber Crime Police.

During raids, police recovered:

• ₹1.85 lakh in cash
• 16 mobile phones
• 2 laptops and a tablet
• 4 cars
• Cheque books and bank passbooks

The arrested include youth aged 21–40 years from Lucknow, Basti, Rae Bareli, Gonda, and Barabanki. The accused failed to present any valid crypto exchange records or KYC documents, which confirmed the illegitimacy of their operations.

Police booked them under BNS Sections 317(2), 318(4), 61(2), and 111(2) (B) and IT Act Sections 66C and 66D, commonly used for cyber and identity-related fraud.

Security Advice:

This case exposes how cross-border digital scams are being run under the cover of “crypto trading,” exploiting unregulated platforms and mule accounts in India.

Stay protected with these tips:

• Avoid P2P crypto deals without KYC
• Do not share bank details or receive suspicious deposits
• Always verify apps and trading platforms
• Enable two-factor authentication
• Report fraud at: www.cybercrime.gov.in