Cybercrime money allegedly routed through USDT trades in Suryapet
SURYAPET: Several villages in Telangana’s Suryapet district have come under police scrutiny after investigators uncovered what they suspect is a rural network of mule bank accounts and cryptocurrency trades used to move proceeds of cyber fraud.
The inquiry centres on villages including Ramapuram, Vallapuram and parts of Munagala mandal, where youths allegedly opened bank accounts and traded the stablecoin USDT through Binance’s peer-to-peer (P2P) platform. Investigators suspect the funds were routed onward to handlers believed to be operating overseas, including in China.
P2P premium transactions under investigation
Officials from the Telangana Cyber Security Bureau (TGCSB) found a cluster of mule-account cases in the Kodad subdivision, covering Munagala, Tripuraram, Pollaram, Vallapuram and Akupamula.
According to investigators, one method under scrutiny involved traders listing USDT on Binance at prices above the prevailing market rate. If the market rate was about ₹92, sellers allegedly offered the token at around ₹96.
Police suspect cybercrime proceeds were used to buy the cryptocurrency at this premium rate, allowing illicit funds to be converted into crypto assets and transferred further along the laundering chain.
During questioning, some account holders reportedly told investigators they were only trading on Binance and that their bank accounts had effectively become mule accounts.
Investigators also found transactions involving several lakh rupees moving through linked crypto wallets. They suspect money credited to bank accounts from cyber fraud cases was quickly converted into cryptocurrency through such channels.
Suspects unavailable during police visits
Teams from the Telangana Cyber Security Bureau visited several villages during the inquiry. However, many youths under suspicion were reportedly not present when officers arrived.
The developments coincide with a broader statewide crackdown on mule-account networks. On March 10, Kodad town police registered multiple cases linked to accounts flagged through the National Cybercrime Reporting Portal.
Under Operation Crackdown 1.0, police across Telangana have registered 549 FIRs and arrested 208 people in actions targeting mule-account operations. Officials said Suryapet district has emerged as one of the areas where the problem surfaced prominently.
Investigators are now examining whether what appeared to be routine peer-to-peer cryptocurrency trading was part of a wider pipeline that converted cyber fraud proceeds into USDT for overseas operators.
The probe in Suryapet is also focusing on whether local account holders were small-time traders seeking commissions or participants in an organised network moving fraud proceeds into cryptocurrency.
