₹3 Crore Cyber Fraud & Crypto Conversion Case: Punjab & Haryana HC Grants Bail to Accused Involved in Crypto Conversion of Funds Considering Limited Role and Custody Period
Case Name: Vikram Singh v. State of Haryana
Date of Judgment: 10 April 2026
Citation: CRM-M-14736-2026
Bench: Hon’ble Mrs. Justice Manisha Batra
Held: The High Court granted regular bail to the petitioner, holding that his role was limited to conversion of fraudulently obtained money into cryptocurrency, he was not required for further investigation, and continued incarceration would serve no useful purpose.
Summary: The present petition was filed under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023 seeking grant of regular bail in a cyber fraud case involving serious allegations of cheating, impersonation, and digital fraud. The FIR was registered on the complaint of a retired Principal who was subjected to a “digital arrest” scam, wherein she was coerced through threats and deception into transferring an amount of ₹3.03 crores to multiple bank accounts.
The investigation revealed a chain of accused persons involved in routing the defrauded money through various bank accounts. A portion of the amount, ₹63 lakhs, was traced to a trading entity, and subsequent disclosures led to the identification and arrest of multiple accused persons. Eventually, the petitioner was implicated on the basis of disclosure statements, alleging that he received ₹4,26,000 from co-accused and converted the same into cryptocurrency (USDT) in exchange for commission.
The petitioner contended that he had been falsely implicated, had no direct role in inducing the complainant, and merely converted a portion of the money received from co-accused. It was further argued that the offences were triable by a Magistrate, investigation qua the petitioner was complete, and he had already remained in custody for a substantial period. The petitioner also expressed willingness to return the said amount.
On the other hand, the State opposed the bail plea, arguing that the petitioner was part of a larger conspiracy and had knowingly facilitated the laundering of cheated money through cryptocurrency, raising concerns of repetition of similar offences.
Decision: The High Court allowed the petition and granted regular bail to the petitioner. It observed that the petitioner’s role was confined to receiving ₹4,26,000 from co-accused and converting it into cryptocurrency, without any direct involvement in deceiving the complainant. The Court noted that the petitioner had been in custody since 18.02.2025, was no longer required for further investigation, and the trial was likely to take considerable time. Considering these factors along with his clean antecedents, the Court held that continued detention would be unjustified. Bail was granted subject to standard conditions including non-interference with evidence, appearance before the trial Court, restriction on travel, and disclosure of personal details. The Court clarified that its observations would not influence the merits of the trial.