New Delhi, Jun 9 The Delhi High Court has refused to grant anticipatory bail to a man in a cyber fraud case involving the transfer of around Rs 1 crore in cryptocurrency.
Justice Swarana Kanta Sharma observed that the case prima facie pertained to an "organised cyber fraud" related to digital currency, and custodial interrogation of the accused was necessary.
According to the complaint, the accused, Gaurav, met the complainant through a common friend in 2024 and subsequently requested him to provide digital currency worth Rs 1 crore.
It is alleged that the complainant initially declined the request, but after the accused repeatedly induced him and promised lucrative investment opportunities, the complainant transferred USDT (cryptocurrency stablecoin) 111,247, equivalent to approximately Rs 1 crore to him.
The court was informed that the cryptocurrency transfer was done from the complainant's "wallet" to a "wallet" controlled and operated by the present accused, and after retaining a portion, the accused allegedly transferred approximately USDT 104,526 to his associates, including a co-accused.
The FIR was registered by Delhi Police in 2025 for the offences of cheating, criminal breach of trust and conspiracy.
The accused claimed that he had been falsely implicated, stating he merely acted as an intermediary between the complainant and his associates based in Kochi.
The court stated that joining the investigation did not by itself entitle the accused to the relief of anticipatory bail, and in the absence of his custodial interrogation, the police would not be able to access the "wallets" or trace the complete proceeds of crime.
It also noted that since the co-accused persons used WhatsApp calls and VPN-based communication to conceal their identities and locations, technical assistance from the present accused was necessary for their identification.
"The investigation conducted so far also indicates, at this stage, that the offence in question forms part of a larger organised cyber fraud racket involving multiple accused persons operating in coordination through digital platforms, encrypted communication applications, VPN services, and cryptocurrency wallets without KYC verification, which clearly requires detailed investigation," the court observed in the judgement passed on May 29.
"Therefore, his custodial interrogation is stated to be necessary for unearthing the larger conspiracy and tracing the cheated amount," it stated.
Considering the possibility of the accused absconding and that the cheated amount was yet to be recovered, the court concluded that granting pre-arrest bail at this stage would adversely affect both the recovery proceedings and the ongoing investigation.
"This court finds no ground for grant of anticipatory bail to the applicant. Accordingly, the present application stands dismissed," it held.
