Chinese Syndicates Behind ₹28,000-Crore Loan and Crypto Scam in India

India’s rapid digital expansion has delivered growth—but also opened the door to unprecedented cybercrime. A recent Enforcement Directorate (ED) probe has uncovered a ₹28,000-crore fraud network run largely by Chinese syndicates, revealing a web of instant loan apps, cryptocurrency laundering, and shell companies exploiting India’s fintech ecosystem.

Predatory apps such as LoanPro, FastCredit, and SmartRupee lured users with instant loans but imposed exorbitant fees and aggressive recovery tactics, driving many borrowers into debt traps. Several victims reportedly faced harassment and suicide, underscoring the human toll of digital exploitation.

The ED found that funds collected through dummy fintech firms and NBFCs were converted into cryptocurrencies like Bitcoin and Tether (USDT) before being routed to China and Hong Kong via untraceable digital wallets. Entities such as HPZ Token and Shinebay Technologies are under investigation for laundering crores through fake investment schemes.

The network spans 20+ Indian states, with Chinese operators coordinating remotely and Indian associates managing local collections and documentation. Loopholes in KYC, SIM registration, and AML enforcement have enabled the scam’s scale and persistence.

Authorities have intensified crackdowns—raids, arrests, and fund freezes are underway nationwide. The government has also allocated ₹782 crore to strengthen cybersecurity and launched the 1930 helpline for cyber fraud victims.

Experts stress the need for biometric KYC, AI-driven transaction monitoring, and international cooperation to safeguard India’s fintech future. Without systemic reforms, digital progress risks becoming digital peril.