Fake USDT Trading Scheme Used 20,507 Mule Accounts to Launder $2.4M

A fake cryptocurrency trading platform that defrauded an Indian investor of ₹21.05 crore has exposed one of the country's largest cyber-enabled money laundering operations, with investigators tracing the proceeds through 20,507 mule bank accounts and 12 layers of transactions.

According to Madhya Pradesh's State Cyber Cell, the victim was persuaded via WhatsApp to invest in USDT and Bitcoin through the fraudulent website tradecboeus.cc/mobile. The platform displayed fabricated trading profits and even permitted an early withdrawal to build credibility before encouraging increasingly larger deposits.

The scam followed a familiar playbook. After months of investments, the victim's online account showed holdings of more than ₹33 crore. When he attempted to withdraw the funds, the operators demanded ₹10.84 crore in purported income tax, followed by an additional 0.2 million USDT as a security deposit for high-value withdrawals.

Financial investigators found the stolen funds were rapidly dispersed through an extensive laundering network. The money first passed through 76 bank accounts, before expanding to 493, then 12,720, and finally 7,218 additional accounts, making it significantly harder to identify the ultimate beneficiaries.

Authorities have frozen ₹1.92 crore so far and are working with banks and financial intelligence agencies across multiple Indian states to trace the remaining funds. Investigators believe the operation was orchestrated by an organised interstate cybercrime syndicate using fake cryptocurrency and online trading platforms to steal and launder investor funds.