KOCHI: What began as a Rs 25-crore online trading fraud case has now widened into a suspected money laundering investigation, with the Kochi City Cyber Police examining whether cybercrime proceeds were systematically routed into high-value investments across sectors, sources said.
The case took a decisive turn after the arrest of Satyanarayana Murthy, 36, and Tyson Raju, 34, who were nabbed from Hyderabad by a Kochi police team on May 2 and later remanded. Police are now moving to secure their custody for a detailed interrogation, expected to be crucial in mapping fund flow and identifying the larger financial network behind the fraud.
The case pertains to the cheating of an Ernakulam-based businessman through a fake online trading platform. Investigators estimate that around Rs 25 crore was siphoned off, of which nearly Rs 16 crore is believed to have moved through accounts and networks linked to the arrested persons.
Officials are now focusing on Murthy’s financial footprint, who is believed to have developed a substantial business presence spanning mining, construction, and IT, with interests estimated at over Rs 300 crore.
Investigators are probing whether proceeds of cyber fraud were used to build or expand these ventures through structured layering of funds. The inquiry includes tracing investments, asset acquisitions, and corporate linkages that may have helped integrate illicit money into apparently legitimate business operations.
A key focus is a luxury apartment in Hyderabad, valued at around Rs 25 crore, believed to be linked to Murthy.
The probe has also expanded to identify other beneficiaries of the alleged laundering network, including intermediaries, investment partners, and firms that may have facilitated movement or utilisation of funds linked to the fraud.
Officials suspect the emergence of a structured ecosystem in which cybercrime proceeds are converted into tangible assets and diversified business holdings. “If established, this points to a systematic mechanism where illegal funds are absorbed into multiple sectors through layered transactions,” a source said.
The Rs 25-crore fraud is being considered one of the highest-value cyber frauds reported from a single victim in the country.
Custodial interrogation of the accused is expected to yield critical leads, including transaction trails, digital evidence, banking linkages, and possible shell entities used in the alleged laundering chain.
Police sources said the case could lead to significant breakthroughs in understanding how cybercrime money is layered and reinvested across sectors. As forensic analysis deepens, investigators expect the probe to uncover a wider chain of operators and beneficiaries, potentially extending beyond state boundaries.
