CloudSEK’s report exposes Chinese-led dark web syndicates operating illegal payment gateways that exploit India’s UPI ecosystem to launder funds through vast networks of mule bank accounts. The operation recruits vulnerable individuals via apps and agents, integrates harvested accounts into centralized dashboards, and routes transactions through layered transfers before cashing out via crypto or hawala. Analysis found over 34,000 mule accounts, 398,000 transactions, and ₹166 crore in one app alone, with potential ecosystem volumes reaching thousands of crores, posing major financial, regulatory, and national security risks.

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