ED Probes 234 Cyber Fraud Cases, Unveils Large-Scale Crypto Money Laundering Operation
India’s Enforcement Directorate Uncovers Vast Crypto-Linked Money Laundering Network
A massive crackdown by India’s premier anti-money laundering agency, the Enforcement Directorate (ED), has uncovered a vast network of cyber-enabled financial crimes involving online gambling platforms, fake investment apps, loan scams, and forex trading frauds.
Investigation Reveals Sophisticated Modus Operandi
The investigation, which spans 234 cases, has identified suspected proceeds of crime amounting to ₹34,855 crore, with assets worth ₹12,230 crore already attached under the provisions of the Prevention of Money Laundering Act.
Cryptocurrency-Based Remittances to China
The probe has revealed a sophisticated modus operandi, with fraudsters, technical operators, financial handlers, and overseas facilitators working in tandem to perpetrate the crimes. The use of cryptocurrency-based remittances to China has emerged as a key dimension of the investigation, with proceeds generated through fraudulent schemes being converted into digital assets using informal crypto brokers.
These funds were then layered through complex transaction chains before being transferred abroad, often disguised as payments for under-invoiced imports or routed back into India as foreign investments.
Growing Nexus Between Cybercrime and Money Laundering
The ED’s investigation has also highlighted the growing nexus between cybercrime and money laundering in India’s digital economy. The increasing misuse of cryptocurrency channels and shell entities demonstrates how fraud networks are adapting to exploit technological and regulatory gaps.
Enforcement agencies are expected to intensify surveillance of suspicious transaction patterns, crypto exchanges, and cross-border fund transfers to combat the rising tide of cyber-enabled financial crimes.
Fraud Networks and Shell Companies
The fraud networks allegedly established hundreds of shell companies and mule bank accounts to move money swiftly across financial systems. Merchant category codes were manipulated to camouflage illegal gambling platforms and fraudulent trading apps as legitimate enterprises.
Victims were commonly lured through social media advertisements, messaging applications, and impersonation calls, including “digital arrest” tactics designed to create fear and urgency.
Need for Institutional Measures
The ED’s probe has also underscored the need for institutional measures to dismantle digital fraud syndicates and recover illicit assets at scale. As the investigation continues, it is likely that enforcement agencies will step up efforts to track and disrupt the complex networks of fraudsters and money launderers operating in the country.
Extensive Enforcement Drive
The investigation marks one of the most extensive enforcement drives targeting organized digital financial crime networks operating across multiple states and international jurisdictions.
The ED’s efforts to crack down on cyber-enabled financial crimes are part of a broader push to strengthen India’s regulatory framework and prevent the misuse of emerging technologies for illicit activities.
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