Vijayawada: In one of India’s largest cybercrime crackdowns, the Eluru police dismantled a sophisticated international syndicate running ‘Digital Arrest’ scams, a new-age psychological extortion racket operated from Southeast Asia with support from Indian money mules, bankers and crypto handlers.

According to EAGLE chief Ake Ravi Krishna, the case (Crime No. 220/2025, Eluru II Town police station) began with a midnight message from a 66-year-old woman held in digital captivity for 72 hours by scammers impersonating Delhi police and ED officials. Under duress, she pledged gold and transferred Rs 51.9 lakh to multiple “verification accounts.” The alert led investigators to expose an elaborate five-tier criminal ecosystem spanning Cambodia, Nepal and China.

As per Eluru SP K Prathap Siva Kishore’s report, the syndicate relied on VoIP-based fake police calls, malicious APK apps, and SIM-box networks to control victims and launder funds through 150 mule accounts and five Binance wallets, converting money into USDT cryptocurrency. Forensic analysis revealed over Rs 2.2 crore moved in two days using automated blockchain contracts (EIP-4337/7702) — a first-of-its-kind in India.

Police arrested 11 accused, including Mumbai-based Poonam Sonawane and UP’s Sachindra Sharma, key links to Chinese handlers. A Maharashtra bank manager and police constable allegedly supplied confidential data and legitimacy to the gang. Assets worth Rs 357 crore have been frozen across 150 accounts.

Investigations traced the network’s digital footprint across Delhi, Karnataka, Uttar Pradesh, Maharashtra, Bihar, and Goa, with servers located in Hong Kong, Singapore, and the U S agencies including I4C, CERT-IN, and Bharatpol are assisting with blockchain and VoIP forensics.

“Every mule detected is several frauds prevented. This case marks a leap in our cyber-intelligence capability,” said DGP Harish Kumar Gupta, noting that the probe has built India’s first intelligence template for crypto-enabled “digital arrests.”

The case has triggered national alerts on weak KYC systems exploited to weaponize bank accounts and SIM cards for money laundering. Police have recommended live-KYC mandates, a national mule-account registry, and public awareness drives to prevent similar scams.

Police also warned that several Indian youths are being trafficked to scam compounds in Cambodia and Myanmar under fake job offers to operate such networks. “Digital safety is national security,” Ake Ravi Krishna said. “Every alert citizen helps prevent another family’s loss.”