The Enforcement Directorate (ED) arrested Arpit Rathore in Kanpur on December 31, 2025, for his alleged role in a high-profile "Digital Arrest" money laundering syndicate that defrauded Vardhman Group Chairman S.P. Oswal of ₹7 crore. Officials from the Jalandhar Zonal Office conducted search operations at Rathore’s premises, recovering ₹14 lakh in unexplained cash and several incriminating digital devices used to facilitate the cross-border crime.

The investigation, launched under the Prevention of Money Laundering Act (PMLA), 2002, stems from a Ludhiana Cyber Crime FIR and nine additional complaints involving the same syndicate. The group reportedly extorted ₹7 crore from Shri S.P. Oswal by impersonating officers of the Central Bureau of Investigation (CBI) and utilized a network of "mule" accounts to siphon off an additional ₹1.73 crore from other victims across the country.

Evidence reveals that Arpit Rathore, a resident of Kanpur, served as a primary coordinator between domestic operatives and foreign nationals. He allegedly instructed co-accused Rumi Kalita—who was arrested earlier on December 23—on how to route illicit funds through over 200 mule bank accounts. These accounts were often linked to shell entities such as Frozenman Warehousing and Logistics and Riggio Ventures Pvt Ltd to layer and disguise the proceeds of the fraud.

Rathore allegedly received his share of the criminal commissions in Indian rupees and USDT cryptocurrency. Investigators found that he played a pivotal role in assisting foreign associates by providing them with active mule accounts, which allowed the syndicate to move cybercrime profits to foreign jurisdictions quickly after a victim made a deposit.

Following his arrest, Rathore was produced before a Kanpur court for a two-day transit remand before being moved to Jalandhar. The Special PMLA Court in Jalandhar has since granted the ED custody of the accused until January 5, 2026. The agency is now focusing on tracing the remaining funds and identifying the international handlers involved in the operation.