Chinese Game Plan Uncovered With Loan App Scam, Rs 141 Crore Laundered Via Crypto | Exclusive
Chinese operatives created fake loan apps such as My Cash and M Rupee that charged exorbitant interest rates of up to 40 per cent, stole personal data, and harassed borrowers
In a major breakthrough, the Enforcement Directorate (ED) has exposed a China-linked financial fraud network that has been targeting India, exploiting the Covid-19 lockdown to deceive and loot financially vulnerable Indians. The scam, involving fake loan apps, laundered a staggering Rs 141 crore through cryptocurrency.
The fraudulent operations were conducted through shell companies Shinebay, Truekindle, and Toucolor, which were used to route the funds. These funds were then converted to cryptocurrencies like USDT and BTC and transferred to Hong Kong and China. Two Chinese nationals, Xiao Ya Mao and Wu Yuanlun, have been arrested and are currently in custody, while other perpetrators remain at large. The ED has also frozen 96 bank accounts containing Rs 19.42 crore.
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Chinese operatives created fake loan apps such as My Cash and M Rupee that charged exorbitant interest rates of up to 40 per cent, stole personal data, and harassed borrowers. The ED has identified 11 individuals and entities involved, including Chinese nationals and Indian shell companies. The scam involved money laundering through fraudulent digital lending apps and cryptocurrency transactions, with an estimated Rs 141.79 crore collected from victims.
Chinese nationals incorporated the Indian companies Shinebay, Truekindle, and Toucolor using dummy Indian directors. These companies operated apps like My Cash, M Rupee, and Billion Cash, offering instant loans with high interest rates of 22-40 per cent and hidden processing fees. The apps accessed borrowers’ personal information and used it to threaten and publicly shame defaulters via WhatsApp groups.
Loans were disbursed through payment aggregators Razorpay and Mpurse, and the funds were converted to cryptocurrency via WazirX wallets. The cryptocurrency was then siphoned to Hong Kong and China using private wallets such as OKX and Local Bitcoins. Chinese nationals Xiao Ya Mao, Wu Yuanlun, and Hong Gaosheng managed the operations remotely, using Indian employees as fronts to control bank accounts and crypto transactions.
The ED traced the money trail, revealing that Rs 3.54 crore was infused into Indian accounts via crypto, with Rs 5.02 crore converted back to crypto and sent abroad. Mpurse Services Pvt Ltd, controlled by Chinese national Jianming Zhu, manipulated APIs to divert funds and created fake consultancy agreements for money laundering.
These loan apps were digital traps, blackmailing borrowers and laundering money via crypto to China. The ED probe uncovered the details of how Chinese operatives, with the help of Indian frontmen, defrauded thousands and laundered the money abroad. The shell companies Shinebay Technologies, Truekindle, and Toucolor were created using dummy Indian directors.
The apps, advertised on Facebook, Google Play Store, and SMS links, targeted low-income borrowers, offering small loans with high processing fees and daily interest rates. Borrowers’ personal information was accessed, and they were harassed and publicly shamed if they missed payments. The crypto funds were sent to Hong Kong-linked wallets, and IP logs confirmed the transactions were accessed from Hong Kong.
Key Chinese handlers included Xiao Ya Mao (operational head, arrested in Chennai), Wu Yuanlun (assistant operational head, arrested), Hong Gaosheng (mastermind, absconding, believed to be in China), and Jianming Zhu (owner of Mpurse Services in Hong Kong). Indian frontmen included Pramoda S, Pavan C R (directors of Truekindle), Debashis Das (director of Shinebay), and Avik Kedia (chartered accountant).
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