Key Highlights
- Jaipur Police arrested Vikas Dhaka over an alleged network that routed transactions worth around ₹24 crore over two years.
- Investigators allege the syndicate used workers’ KYC details to open bank accounts and obtain merchant QR codes.
- Accounts and payment channels were allegedly supplied to cybercriminals and illegal betting platforms to collect funds.
Jaipur Police have arrested a man accused of operating a cryptocurrency and hawala network that allegedly routed around ₹24 crore through mule bank accounts and merchant payment channels over two years.
According to an October 30 report by The Times of India, police arrested the accused, Vikas Dhaka, at a flat in Jaipur’s Vaishali Nagar area. Police allege that the network used identity documents and Know Your Customer (KYC) details collected from workers in Rajasthan to open bank accounts and obtain merchant payment facilities.
Police allege that the accounts were used to collect proceeds from cybercrime and illegal betting. Investigators suspect the funds were subsequently converted into USDT and routed through cryptocurrency and hawala networks.
Workers’ KYC details allegedly used to open mule accounts
Deputy Commissioner of Police (DCP) West Prashant Kiran said Dhaka, a resident of Basni village in Sikar district, had arrived in Jaipur around 20 days before his arrest.
Police allege that he was preparing to expand the operation by establishing another network of mule accounts and merchant payment channels.
According to investigators, Dhaka and his associates approached workers in areas including Jaisalmer and Sikar, offering payments in exchange for identity documents and KYC information.
The information was allegedly used to open current and savings accounts with private banks and payment banks. The network also reportedly obtained merchant QR codes through Airtel Payments Bank.
Police suspect the accounts and QR codes were supplied to cybercriminals and illegal betting platforms in exchange for commissions. The available reporting does not establish that the workers knew their documents would be used for these activities.
Police trace alleged money trail through crypto and hawala
Investigators suspect the bank accounts and merchant payment channels served as collection points for proceeds from online fraud and illegal betting. The funds were allegedly converted into USDT, with some reportedly routed through Dubai-based operators before returning to India through informal channels.
Police have not publicly identified the wallets or overseas intermediaries involved.
The reported ₹24 crore figure refers to transactions identified over approximately two years. It should not be interpreted as a confirmed amount of cryptocurrency transferred or money recovered by police.
Zee Rajasthan highlights alleged Dubai connection
In an October 30 post on X, Hindi-language news outlet Zee Rajasthan described the case as a Dubai-linked hawala operation and a cryptocurrency syndicate worth ₹24 crore.
The post tagged Jaipur Police and Rajasthan minister Vishnu Deo Sai. It highlighted the alleged overseas connection but did not provide independent transaction records or further details about the suspected route.
DCP says network involved agents and overseas operators
DCP Prashant Kiran described the alleged operation as a network involving several layers of intermediaries.
“The racket had links across several districts and involved agents, bank accounts, cryptocurrency wallets and overseas operators,” Kiran said, according to The Times of India.
Police are examining the roles of agents who allegedly collected workers’ documents and intermediaries involved in managing the accounts and overseas transfers.
During the operation, investigators seized nine mobile phones, eight Fino Payments Bank debit card kits and rolls of Google Pay merchant scanners.
Police are examining the devices for information about cryptocurrency wallets, digital keys, Telegram conversations and active bank accounts that may help establish how the network operated.
Other Indian investigations have traced crypto and hawala routes
The Jaipur case follows other investigations in India involving alleged cybercrime proceeds, cryptocurrency conversions and informal money-transfer networks.
On October 28, The Crypto Times reported that Delhi Police had arrested seven people in connection with an alleged ₹3.93 crore cyber fraud. Investigators reportedly traced the stolen funds through mule bank accounts, cash withdrawals and a hawala-linked conversion channel involving USDT.
Earlier, on March 27, The Crypto Times reported that the Central Bureau of Investigation had arrested an alleged kingpin linked to crypto scam operations in Myanmar.
The investigation concerned a network accused of luring job seekers abroad and forcing them to participate in cryptocurrency scams, romance fraud and digital arrest schemes.
These cases involve different alleged networks and methods. The available reports do not establish any connection between them and the Jaipur investigation.
Investigation focuses on wider network
Police are continuing their investigation into the alleged network. The identities of all suspected operators and the final destination of the funds have not yet been established.
The allegations against Dhaka and others remain subject to investigation and the legal process.
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