`Market Box': How Cyberabad cops bust interstate online-trading gang; seize Rs 9.8 Cr

Hyderabad: Cyberabad police busted a gang of online fraudsters and arrested four accused from Uttar Pradesh and Rajasthan. The gang was cheating people in the name of online trading by using the `Market Box' application.

It all began when they cheated a man of Rs 27 lakhs. He immediately lodged a complaint with the Cybercrime wing of Cyberabad police. A case under section 419, 420 IPC, and Sec 66C; 66D of the IT Act was registered.

During the investigation, police found that the victim started online trading on 'Market Box' and initially invested approximately Rs. 9,999. He lost the whole amount. Then he again deposited Rs 10 lakh and received Rs.14.9 lakhs. Similarly, he continued trading and invested around Rs.62.6 lakhs and received Rs.34.7 lakhs. In this process, he lost Rs.27,90,000. When he realized that he was being cheated, he approached the police.

White-collar criminals

Mastermind, Abhishek Jain (32) a Commodity Trader from Uttar Pradesh has turned out to be the main accused who operated the 'Market Box' app.

Pawan Kumar Prajapat(35) and Akash Roy (35) of Fintech Business of Rajasthan provided bank accounts.

Krishna Kumar, the accomplice of Abhishek Jai, collected money from hawala traders.

Modus operandi

Mastermind Abhishek Jain developed the trading application 'Market Box/MB' www.marketbox.in, and promoted it on various WhatsApp and Telegram groups. This application is similar to Multi Commodity Exchange (MCX) but is not registered with SEBI. There are about 3000 traders registered on this fake app. Jain lured the customers by promoting and advertising his trading app on various chat groups on different platforms.

For receiving investments from victims, he shared the Merchant Pool Account (MPA) of Akash Roy and Pawan Kumar Prajapat maintained by a Jodhpur-based Fintech company.

This MPA is linked to the market box through the API (Application Programming Interface) of Market Box. He also shared regular bank accounts of Pawan and Akash's associates from Rajasthan and Kolkata.

After an investment or pay-in from the victim, it is reflected against his balance on Market Box ID. The investment received from victims was diverted through multiple accounts.

Hawala Transaction

Krishna Kumar has received cash for about two years from merchants in Varanasi and nearby areas. Pawan and Akash were paid a commission of 10 percent from the investments received by Abhishek Jain.

Pawan and Akash were arrested from Jodhpur. Police also recovered mobile phones used for committing fraud.

Based on their confession, Abhishek Jain and Krishna Kumar were arrested from Mughalsarai town of Chandauli district of UP state. Police also seized Rs 9.8 crore, seven mobile phones, and three laptops.