AMBALA, May 19 — A local court has dismissed the bail plea of 20-year-old Mustak Mohamed, a resident of Patiala, who is currently lodged in jail for his alleged involvement in a ₹9.68 crore cryptocurrency fraud that surfaced in 2023.
This marked Mohamed’s second failed attempt to secure bail. The fraud case stemmed from a complaint by Lalit Singla, a jeweller, who reported being duped after joining a fake WhatsApp trading group and investing through a bogus website, VIYAKAE.com.
Police investigations unearthed WhatsApp chats and bank transactions that led to the freezing of ₹2.05 crore from the defrauded sum. The recovered amount was later returned to Singla following court directives.
During the probe, authorities discovered that ₹38 lakh had been routed to an account linked to Mohamed. He was arrested alongside Jatin Jindal, who allegedly managed the account. Their statements led to the recovery of key evidence, including multiple mobile phones, SIM cards (one registered in Mohamed’s name), forged rubber stamps, and ₹1.3 lakh in cash.
Investigators further uncovered a complex financial trail involving 15 primary and 700 secondary bank accounts believed to be used for siphoning off the stolen money. The case has since expanded, with 23 similar complaints across India found to be associated with Mohamed’s financial activities.
Citing the national scope of the fraud, the scale of the cybercrime network, and the risk of tampering with evidence, the court ruled against granting bail.
“The rising prevalence of such offences and the material recovered during the investigation do not justify bail at this stage,” the court observed.
Mohamed remains in judicial custody as the investigation continues.
