Key Highlights
- India’s Enforcement Directorate (ED) searched 19 locations across Tamil Nadu, Kerala, and Srinagar.
- The agency seized cryptocurrency worth approximately ₹3.35 crore, ₹14.5 lakh in cash, and froze over ₹40 lakh in bank accounts.
- Investigators say fraudsters diverted ₹14.95 crore from fake investment and work-from-home scams through shell companies before converting the funds into crypto.
India’s Enforcement Directorate (ED) has intensified its crackdown on cryptocurrency-enabled financial crime, conducting coordinated searches across 19 locations in connection with an alleged online investment and work-from-home scam.
According to an official statement released on July 12, the agency executed search operations on July 10 and July 11 at 16 locations in Tamil Nadu, two in Kerala, and one in Srinagar under the Prevention of Money Laundering Act (PMLA).
The operation targets an alleged money laundering network linked to a ₹14.95 crore fraud involving fake investment platforms and fraudulent work-from-home schemes.
The ED initiated its investigation based on FIR No. 25/2025 and FIR No. 637/2022, registered by the Tamil Nadu Police and Telangana Police, respectively, under provisions of the Bharatiya Nyaya Sanhita (BNS), Indian Penal Code (IPC), and the Information Technology Act.
Modus Operandi: How the scam moved funds
According to the ED, cyber fraudsters lured victims by promising high investment returns and commissions through fraudulent online investment platforms and fake work-from-home opportunities. After victims transferred money into bank accounts controlled by the accused, investigators allege the proceeds were immediately layered through multiple mule accounts and shell companies before being converted into cryptocurrency.
The crypto assets were then transferred among multiple digital wallets to conceal their origin and ownership. The ED said this layering process was designed to make tracing the illicit proceeds significantly more difficult.
Shell companies and crypto wallets under investigation
The agency identified Roshan Fiaz as one of the principal individuals allegedly involved in the laundering operation. According to investigators, he and his associates controlled numerous mule bank accounts operated in their own names, the names of family members, and through companies including Wingsonwings Technology Pvt. Ltd., Trading Wheels Pvt. Ltd., and Garnet Management Consulting.
The ED also alleged that several business entities, including R.K. Electrical, Balmani Oil Store & Agency, JK Footwear, and Team Well Engineering, were used to layer and integrate illicit funds into the financial system. Investigators further linked transactions from another accused, Luban Parvez, to Roshan Fiaz, including transfers exceeding ₹45 lakh.
Crypto worth ₹3.35 crore seized
During the searches, the ED recovered a substantial amount of digital and financial evidence.
According to the agency, investigators seized cryptocurrency valued at approximately ₹3.35 crore, ₹14.5 lakh in cash, Digital devices, including laptops and mobile phones, cryptocurrency wallet information and recovery phrases, crypto exchange account details, banking records, company incorporation documents, and books of accounts
The agency also froze bank accounts holding more than ₹40 lakh while continuing its investigation.
Part of India’s expanding crypto enforcement drive
The latest raids come amid a series of cryptocurrency-related investigations by the Enforcement Directorate. Earlier this month, the agency filed a prosecution complaint against alleged Bengaluru hacker Srikrishna Ramesh, also known as Sriki, accusing him of using cryptocurrency, darknet infrastructure, and overseas exchanges to move proceeds from alleged hacking and cyber extortion.
In a separate case, the ED carried out searches in West Bengal as part of an investigation into an alleged crypto investment fraud, chit fund operation, and bogus stock market scheme with suspected Dubai-linked fund flows.
The ED said the present investigation is ongoing. The recovery of crypto wallets, exchange accounts, and blockchain-related evidence in multiple recent cases indicates that digital assets are increasingly featuring in the agency’s financial crime investigations alongside conventional banking records and cash transactions.
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