Probe uncovers layered network of forged bank accounts, prepaid payment instruments (PPIs) and digital wallets allegedly used to route and disguise proceeds of ‘pig butchering’ scam
30 Arpil, 2026 – Chandigarh : The probe into the Rs 19.84-crore cryptocurrency fraud targeting a Ludhiana-based industrialist in a suspected “pig butchering” scam has uncovered a complex web of financial transactions involving forged bank accounts, mule accounts and digital payment instruments. Investigators are also suspecting the use of online gaming platforms as an informal hawala channel.
Police investigations have revealed that the defrauded amount — Rs 19,84,30,000 — was initially transferred into 76 forged bank accounts across 15 banks between May 15 and November 20, 2025. The funds were subsequently layered and routed through nearly 200 mule accounts and prepaid payment instruments (PPIs).
The PPIs — including digital wallets, smart cards and vouchers — allow users to store money in advance for transactions without requiring a direct bank link each time, making them convenient but also vulnerable to misuse.
Police say fraudsters are increasingly exploiting gaming apps to facilitate hawala-style transfers, blending digital payment systems with traditional underground networks.
In such operations, accounts based in India are often linked to accounts abroad, with funds routed through gaming ecosystems and withdrawn in another jurisdiction, thereby evading formal banking scrutiny. The winnings are then withdrawn into bank accounts or e-wallets, projected as legitimate gaming earnings, thereby integrating illicit money into the formal financial system.
According to the FIR, a copy of which is with The Tribune, industrialist Jagdeep Singal was duped over a six-month period. Notably, between November 17 and 20 alone, he transferred over Rs 5 crore into the fraudulent accounts.
Investigators have identified that the accused used at least 76 mule accounts spread across Delhi, Mumbai, Maharashtra, Gujarat, Punjab and Bengaluru. These accounts were opened using around 15 banks accounts including IDFC Bank, ICICI Bank, Bank of Baroda, Axis Bank and Bandhan Bank. Beside, over 10 fake mobile numbers were also used for duping the victim.
In his complaint to police, victim Jagdeep Singal admitted, “Aforesaid funds were siphoned off through a complex network of mule bank accounts provided by the accused persons under different names and entities.”
He further stated, “The fake website, designed to imitate the legitimate Coinex platform (www.coinex vip2.com), was used as a tool to create an illusion of authenticity.”
“In reality, the purported e-wallet and the assets reflected on the fake cryptocurrency website were entirely fictitious, and the funds transferred by me were directly misappropriated by the accused persons,” Singal added.
The Tribune