India's ED Exposes ₹285 Crore Crypto Driven Scam

India’s fight against digital financial crime received a major boost as the Enforcement Directorate ED provisionally attached ₹8.46 crore across 92 bank accounts marking a decisive step against a vast cyber fraud network exploiting fake e commerce and investment apps. The move reflects the growing sophistication & coordination in India's cybercrime enforcement ecosystem.

• ED’s Action & Investigation Overview
• How the Scam Operated Across India
• Crypto Trail Hawala Links & Financial Insights

ED’s Action & Investigation Overview

The Enforcement Directorate’s Hyderabad Zonal Office provisionally attached ₹8.46 crore held across 92 bank accounts including those connected to crypto platforms such as CoinDCX and other wallets. This action was taken under the Prevention of Money Laundering Act PMLA 2002 following multiple FIRs registered by Kadapa Police under IPC 420 and IT Act Sections 66 C & 66 D.

The case involves widespread cyber fraud executed through fake mobile apps and e commerce task schemes.

How the Scam Operated Across India

The investigation revealed a pan India scam network using fake part time job schemes and fraudulent investment applications such as NBC App Power Bank App HPZ Token RCC App Making App and others. Fraudsters used WhatsApp Telegram and bulk SMS to lure victims with promises of high commissions. Victims were asked to deposit money into app wallets via UPI after which small initial profits were credited to build trust.

Eventually once substantial deposits accumulated withdrawal attempts consistently failed. Scamsters then claimed taxes or clearance fees were required before disappearing entirely shutting down apps deactivating accounts and cutting all communication.

Crypto Trail Hawala Links & Financial Insights

The ED’s financial analysis uncovered Proceeds of Crime worth ₹285 crore routed through more than 30 primary bank accounts active for only 1 to 15 days before being rapidly moved into over 80 additional accounts. A significant portion of these funds was converted into cryptocurrency and moved through hawala channels.

ED, Hyderabad Zonal Office, has provisionally attached bank balances amounting to Rs. 8.46 Crore spread across 92 bank accounts, including that of CoinDCX and a few crypto wallets, under PMLA, 2002 in connection with an ongoing investigation in large-scale cyber fraud committed… pic.twitter.com/6jaDzkbkub

— ED (@dir_ed) November 20, 2025

Investigators found that USDT Tether was frequently purchased on Binance P2P using third party payments derived from crime proceeds. Sellers on platforms like WazirX Buyhatke & CoinDCX sold USDT to scamsters at marginal premiums.

Notably USDT worth ₹4.81 crore was converted via CoinDCX using non KYC verified user accounts highlighting gaps exploited by scammers. Further investigation remains ongoing.

The ED’s swift action underscores India’s growing capabilities in combatting digital financial crime especially as fraudsters increasingly shift toward crypto based laundering. By blocking ₹8.46 crore and exposing a ₹285 crore fraud network authorities have strengthened public trust and set the stage for enhanced collaboration between cybersecurity teams law enforcement and financial institutions.

Related Articles

1. India to Change Crypto Strategy as Global Trends Shift
2. An Indian bank enabling crypto services with UNICAS
3. India’s Consultation Paper on Cryptocurrency; RBI DG Statement
4. Jio x Aptos: How India’s Giant Is Turning Web3 Into Everyday Utility
5. Amravati to Put All Government Records on Polygon Blockchain