- Visakhapatnam police arrested nine individuals involved in a loan app fraud scheme, seizing cryptocurrency worth ₹60 lakh.
- The scheme led to a victim’s suicide after facing harassment, including threats with morphed images sent to contacts.
- Chinese cybercriminals allegedly masterminded the operation, using multiple Indian bank accounts to issue loans and collect repayments.
Visakhapatnam police apprehended nine individuals on Sunday for their involvement in an instant loan app fraud operation, confiscating cryptocurrency valued at approximately ₹60 lakh. According to Commissioner of Police Shankabratha Bagchi, the arrested suspects include G. Sambasiva Rao (32), K. Sandeep (39), Y.V. Dileep Kumar (25), Y. Sai Krishna (31), all from Guntur and Palnadu districts, along with five others.
The case emerged after a city resident borrowed ₹2,000 through a loan app and subsequently faced extreme harassment when unable to repay. The perpetrators demanded excessive repayment amounts and sent morphed images of the victim and his wife to their contacts via WhatsApp. Though the victim’s wife paid the demanded amount, the victim ultimately died by suicide due to the continued harassment and humiliation.
Investigation Reveals Complex Fraud Network
Police investigation traced transactions to a bank account in Hailakandi, Assam. The account showed numerous small transactions—apparent loan repayments—that were subsequently transferred to five different accounts. Commissioner Bagchi explained that the operation followed a cyclical pattern: specific company accounts issued loans, different accounts collected repayments, and funds were then redirected to the original accounts to facilitate more loans.
Sambasiva Rao reportedly confessed that two Chinese cybercriminals contacted him through Telegram, promising substantial commissions for establishing Indian firms and procuring bank accounts needed for the operation. With help from Sandeep, Dileep, and others, he facilitated the opening of multiple bank accounts under company names using identities of unsuspecting individuals.
Cryptocurrency Seizure and Evidence
According to Commissioner Bagchi, Sambasiva Rao provided details of approximately 132 bank accounts to the Chinese operators through various social media applications. These accounts processed transactions related to the fraudulent loan app operations.
Police recovered cellphones and laptops used in the crimes. Digital forensic examination revealed substantial cryptocurrency holdings in the suspects’ wallets: Sambasiva Rao possessed 53,784 USDT, Dileep had 12,628 USDT, and Sandeep held 1,182 USDT. The combined cryptocurrency value totaled approximately ₹60,43,588.
The investigation continues as authorities work to identify additional suspects and potential victims of the loan app fraud scheme that has caused significant financial and emotional harm to numerous individuals.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Bitcoin Treasury Firms Pave Way for $200T Market Cap, Says Back
- Trump Signs Executive Orders on Cryptocurrency and Artificial Intelligence
- Bitcoin Trades 40% Below Value as 36,000 BTC Leave Major Exchanges
- Loopscale Halts Markets After $5.8M Exploit
- Bitcoin Could Surge 13,800% by 2045, Says MicroStrategy’s Michael Saylor
