Investigation rekindles: Hyderabad's cold case of $53M Chinese gambling scam is back on track
For almost four years, a gripping investigation into illicit Chinese betting apps linked to a colossal money laundering scam has been rekindled in Hyderabad, India. The probe involves illicit transactions worth an staggering ₹443 crore (approximately equivalent to US$53 million), which allegedly found their way to Hong Kong-based corporations via Indian shell companies.
The saga began in July 2020 when a Hyderabad resident complained about losing ₹97,000 (around US$11,600) while playing a color-prediction game on a Chinese betting platform. Subsequently, the Hyderabad Cybercrime Police filed a cheating case on July 25, 2020, under respective sections of the Indian Penal Code (IPC) and the Gaming Act.
Following this, on August 17, 2020, the Enforcement Directorate (ED) Hyderabad took the initiative to investigate alleged online betting activities associated with Chinese individuals and entities.
ED's 2021 complaint shed light on red flags
The investigation gained significant traction on September 9, 2021, as ED Deputy Director B S Saravana Kumaran submitted a formal complaint. The ED accused Chinese owned betting apps of operating illegally within India, receiving funds through gambling and sending them abroad under the guise of payments for cloud services and freight forwarding.
According to the complaint, funds were moved through various Indian firms situated in Delhi and Mumbai-notably Great Trans International, Asia Pacific Cargo Company, Radiant Spark Technology, Achiever Biz International, Connecting Worldwide, and Genex Shipping Private Ltd. The ED emphasized that all the companies' addresses were discovered to be fictitious, and summons sent to them remained undelivered.
The ED traced more than ₹85.95 crore (US$10.3 million) in fund transfers from two Gurgaon-based companies—Linkyun Technology Private Ltd and Dokypay Technology Private Ltd—to the aforementioned Indian entities. The total sum routed to Hong Kong was calculated to be ₹443 crore.
"The Chinese directors of Linkyun and Dokypay have fled, deepening the mystery surrounding the operations," said the ED. Investigations showed that funds collected through prohibited Chinese betting apps were channelled through electronic wallets and remitted to Hong Kong-based enterprises.
Case stalemate interrogated
In spite of the ED's detailed findings and financial investigation, the original probe by Hyderabad's Central Crime Station (CCS) witnessed minimal progress. A chargesheet was filed in 2021 against 14 individuals, including Chinese national Yan Hao, yet no arrests were made.
A senior cybercrime official acknowledged this shortcoming: "No arrests have been made by the CCS in this case. They sent out notices to some of the accused and recorded their statements. We will now scrutinize the evidence collected so far and decide on the future course of action."
Case officially reopened
Given the overlaps between the ED's complaint and the original 2020 cybercrime case, the Joint Commissioner of Police (Crime) reassigned the investigation to the cybercrime division. On May 3, 2025, the case was re-registered under IPC sections 420 (cheating), 465 (forgery), 468 (forgery for the purpose of cheating), 471 (using forged documents as genuine), and 34 (common intention).
With the case back in the hands of the cybercrime team, officials will evaluate financial records, digital footprints, and evidence gathered over the years, as part of a renewed investigation.
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The ED's financial investigation revealed that funds from illicit Chinese betting apps were disguised as payments for cloud services and freight forwarding, with a total of ₹443 crore (approximately US$53 million) being routed to Hong Kong-based corporations via Indian shell companies. The mystery deepened when the Chinese directors of the involved companies fled.
Despite the ED's comprehensive findings, the original investigation by Hyderabad's Central Crime Station (CCS) saw minimal progress, resulting in the case being re-assigned to the cybercrime division for re-evaluation. The reopened case will involve scrutinizing financial records, digital footprints, and evidence to determine the future course of action.
