Key Highlights
- Supreme Court of India denies anticipatory bail to chartered accountant Bhaskar Yadav in ₹640 crore crypto fraud.
- Investigators traced stolen funds through over 5,000 bank accounts and a UAE-based digital platform, with portions converted into cryptocurrency.
- The Enforcement Directorate revealed a coordinated network of chartered accountants, company secretaries, and crypto traders laundering the proceeds.
India is seeing a crackdown on high-value crypto-related frauds after the Supreme Court of India denied anticipatory bail to a chartered accountant involved in a ₹640 crore (about $77 million) cyber fraud and money laundering case.
The decision highlights the increasing role of cryptocurrency in financial crimes and the government’s efforts to track illegal digital fund flows.
Supreme Court upholds Delhi High Court order
A bench of Justices M M Sundresh and Augustine George Masih upheld a February 2 order of the Delhi High Court, which had denied pre-arrest bail to chartered accountant Bhaskar Yadav and directed him to surrender within 10 days.
The Delhi High Court had earlier dismissed anticipatory bail pleas filed by Yadav and co-accused Ashok Kumar Sharma, noting the “intricate mesh of laundering of money” involved in the scam.
“The accused/applicants, being skilled professionals, have allegedly crafted laundering of proceeds of crime across multiple layers, and to unearth the same, I find substance in the submission of learned counsel for DoE that custodial interrogation is much required,” the court said.
The court clarified that the case goes beyond legal crypto trading. “It is not a case of mere dealing in cryptocurrency, which per se is not a crime in this country and the liability of the accused persons is confined to paying tax on the crypto transactions,” it stated.
How crypto was used in the scam
Investigators from the Enforcement Directorate (ED) revealed that the ₹640 crore (approx. $77 million) scam involved fraudulent schemes like phishing, fake jobs, betting, and gambling.
Funds stolen from gullible investors were routed through more than 5,000 Indian bank accounts and uploaded to PYYPL, a UAE-based digital payment platform. Part of the money was also withdrawn in cash in Dubai using debit and credit cards issued by Indian banks.
Crypto played a key role in obscuring the trail. Investigators traced portions of the stolen funds being converted into cryptocurrency, enabling perpetrators to transfer money across accounts and jurisdictions while reducing traceability.
The ED said the operation was coordinated by a nexus of chartered accountants, company secretaries, and crypto traders working together to launder proceeds of crime.
Punjab-Haryana digital arrest case highlights crypto misuse
In a separate but related case, the Punjab and Haryana High Court denied anticipatory bail in a ₹2.65 crore ($3.2 million) “digital arrest” scam. Justice Rajesh Bhardwaj observed on February 9 that the accused had “actively participated in the offence of cheating and siphoning of the hard-earned money of the complainant” using technology.
The FIR, registered on August 6, 2025, stated that the victim was forced to transfer money using a forged Supreme Court order. Investigators discovered that part of the stolen funds had been converted into cryptocurrency and moved through accounts linked to 18 different firms, showing how even smaller scams are now exploiting digital assets to hide illicit money.
Ahmedabad Police make arrests in ₹100 crore crypto scam
Authorities are increasing enforcement across India. Ahmedabad Police recently arrested key suspects in a ₹100 crore ($12 million) crypto fraud. The case involved layering of funds and digital laundering, similar to the Delhi scam, showing a pattern in high-value crypto-related crimes.
These cases show that while cryptocurrency trading remains legal in India, the government is taking a strict approach against its misuse for fraud and money laundering.
Also Read: USDT Worth ₹19 Crore Stolen in Fake KYC Crypto Scam
