Cryptocurrency Scam: ED Uncovers Rs 260 Crore International Fraud Network Across 11 Places

The money, primarily Bitcoin, was converted to Tether and laundered internationally via hawala operators, primarily in the UAE. The investigation continues to trace beneficiaries and recover funds.

NEW DELHI: The Enforcement Directorate on Wednesday conducted coordinated searches at 11 locations across Delhi, Noida, Gurugram, and Dehradun as part of its investigation into a sprawling cyber fraud operation involving ₹260 crores in illegal cryptocurrency transactions and international money laundering. The money laundering investigation, launched under the Prevention of Money Laundering Act (PMLA), stems from First Information Reports (FIRs) filed by the Central Bureau of Investigation (CBI) and Delhi Police against the fraud network. Officials revealed that the cyber criminals operated through sophisticated impersonation tactics, masquerading as police personnel and investigation officers to intimidate victims into parting with their money.  "The accused would threaten victims with imminent arrest and force them to transfer funds immediately," an ED official told reporters, speaking on condition of anonymity. In a parallel operation, the fraudsters also assumed false identities as technical support representatives from tech giants Microsoft and Amazon, exploiting victims' trust in these established brands to facilitate money transfers. The scam targeted both Indian nationals and foreign citizens, indicating the international scope of the operation. 

Cryptocurrency Operation Exposed 

ED investigations have revealed that the accused accumulated over ₹260 crores primarily in Bitcoin, which were stored across multiple cryptocurrency wallets before being transferred to various individuals involved in the scheme. "The ill-gotten gains were allegedly converted into cryptocurrencies, primarily Bitcoins, and then transferred to various accused individuals," officials said. 

The digital assets were subsequently liquidated into cash through a sophisticated process involving conversion to USDT (Tether) tokens and distribution via a network of hawala operators and individuals based in the United Arab Emirates, effectively moving the proceeds beyond easy regulatory reach. Authorities confirmed that further investigation is underway to trace additional beneficiaries and recover the proceeds of crime. 

The coordinated raids represent the latest effort by Indian enforcement agencies to crack down on increasingly sophisticated cyber fraud networks that exploit digital payment systems and cryptocurrency platforms to launder illegal proceeds. The investigation remains ongoing, with authorities working to identify additional perpetrators and recover stolen funds.

(With inputs from ANI)

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