Online gaming fraud: ED seizes cash, freezes assets worth crores

The ED seized Rs 30.30 lakh cash, froze over 100 bank accounts and assets worth crores in a probe into an online gaming fraud. The accused allegedly duped a complainant of Rs 58.42 crore using manipulated gaming platforms.

ED Seizes Cash, Freezes Assets Worth Crores

The Enforcement Directorate (ED) has seized cash amounting to Rs 30.30 lakh and frozen more than 100 bank accounts in connection with an ongoing alleged money-laundering investigation relating to an online gaming and betting fraud involving manipulated gaming platforms.

The action was taken during searches conducted on August 18 at 12 premises in Nagpur, Gondia and Ahmedabad under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA), covering the premises linked to the alleged accused and his associates.

Mutual funds and shares having an aggregate value and balance of approximately Rs 5 crore, along with two bank lockers, were also frozen, and three luxury vehicles valued at around Rs 1.70 crore were seized in the operation, said the agency.

Further, 11 mobile phones and 1 laptop containing potential digital evidence relating to the illegal gaming operations and financial transactions were seized. In addition, incriminating documents pertaining to immovable properties valued at approximately Rs 16.50 crore were also seized.

ED said the searches have resulted in securing substantial financial and digital evidence and have furthered the investigation into the alleged generation, concealment, possession, layering and utilisation of proceeds of crime arising from the illegal online gaming operation.

Investigation Reveals Elaborate Fraud Scheme

ED's Nagpur sub-zonal office conducted the search operations based on its ongoing investigation on the basis of FIR registered at Cyber Crime Police Station, Nagpur City, against the alleged accused for offences punishable under various Sections of the Indian Penal Code, 1860 and the IT Act, 2000.

ED said its investigation under PMLA has revealed that the alleged accused induced the complainant to invest substantial amounts in online gaming by promising high returns within a short period.

"The complainant was provided links to illegal gaming platforms and was repeatedly induced to make further deposits despite suffering repeated losses. The gaming platforms were manipulated in such a manner that whenever the complainant approached a winning position, technical errors or glitches occurred, thereby preventing him from securing the winnings. Through such alleged fraudulent and manipulative activities, the complainant was defrauded of approximately Rs 58.42 crore," said the federal agency in a statement.

Complex Money Laundering Trail Uncovered

"The investigation has further revealed that the proceeds generated from such illegal gaming activities were collected through multiple channels."

The complainant was directed to make payments either in cash through designated couriers, using hawala-style "token" currency notes for identification and reconciliation, or through bank transfers to designated "agent accounts" nominated by the alleged accused, said the ED.

"Several such mule bank accounts, maintained in the names of different persons/entities, were used by the accused and his associates for receiving, layering and laundering the proceeds of crime. Analysis of such mule bank accounts revealed massive transactions running into several crores of rupees which were either withdrawn in cash or remitted outside India towards bogus import payments," added the ED. (ANI)

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