India’s Enforcement Directorate is planning a major overhaul of its economic crime investigations, targeting completion of probes within about 18 months while strengthening its ability to track emerging financial crime methods involving cryptocurrencies.
The developments were discussed during the ED’s 36th Quarterly Conference of Zonal Officers (QCZO), held at IIM Bangalore from September 14-15. The conference was preceded by a management and leadership workshop on September 13, bringing together ED officials, IIMB faculty and international experts.
ED Director Rahul Navin chaired the three-day programme, which also covered artificial intelligence, data analytics, deepfakes, cyber threats, international cooperation and asset recovery.
The agency said the broader approach is to move from a “case-centred” model toward an “ecosystem-centred” approach, with greater use of technology, data and coordination among enforcement agencies.
Crypto crime investigation
A dedicated session on emerging trends in the crypto ecosystem examined how digital assets and blockchain-based services can be used to move or conceal funds.
The ED said officials discussed decentralised finance protocols and the tokenisation of real-world assets without intermediaries. The session also examined hawala networks that can convert rupee funds through domestic brokers into dollar-pegged stablecoins for cross-border transfers.
Investigators reviewed several techniques that can make blockchain transactions more difficult to trace, including chain-hopping, cross-chain bridges, mixers and tumblers, privacy coins, nested accounts and wash trading involving non-fungible tokens.
The agency also reviewed investigative responses available for tracing such transactions, alongside access to platforms that provide virtual digital asset transaction records.
Data analytics and cyber-forensics were another focus. The ED said its officers examined advanced forensic tools and field acquisition kits, as well as plans to expand its arrangement with the National Forensic Sciences University for deploying experts at regional laboratories.
The conference also highlighted the risks associated with artificial intelligence. The ED Director cautioned that even offline AI deployments could create data-leak risks and stressed that confidential case material must be handled carefully.
ED plans major expansion
The Centre has approved a significant expansion of the ED’s sanctioned workforce, increasing posts from 2,029 to 3,256.
Under the restructuring, the field structure will expand to 50 Prevention of Money Laundering Act (PMLA) zones and five dedicated Foreign Exchange Management Act (FEMA) zones in Delhi, Chandigarh, Mumbai, Kolkata and Chennai.
Functional units will also increase from 131 to 241. The restructuring is targeted for rollout from January 1, 2027, with the broader objective of reducing the investigation lifecycle from the current four to five years to about one and a half years.
The agency also plans to strengthen its use of intelligence and technology platforms. Officials reviewed NATGRID, the Interoperable Criminal Justice System, corporate and immigration databases, virtual digital asset transaction records and analytical reports from the Financial Intelligence Unit-India.
The ED is also proposing real-time coordination protocols with FIU-IND and tighter controls over the official use of sensitive databases.
Faster trials and asset recovery
Alongside faster investigations, the ED is pushing zones to identify at least 10 high-profile cases in each region where trials and convictions can potentially be completed within six to eight months.
The agency is also seeking closer information sharing with state police, CBI, Customs, DRI, NCB and SEBI. A proposed automated reporting system would integrate crime-related information with CCTNS and NATGRID, with threshold-based alerts.
For long-running cases, the conference approved a live trial-pendency dashboard and a standardized system for tracking prosecution complaints. Cases pending for more than 10 years are to be placed on a dedicated monitoring register for monthly review.
The agency also wants tighter monitoring of adjournments, witness examinations and other court proceedings to reduce delays.
Asset recovery remains another priority. The ED said restitution of attached and confiscated assets has crossed ₹73,800 crore across 76 cases.
Officials were directed to pursue restitution more actively, including during pending trials where legally permitted. Confirmed attached properties are also to be valued by government-approved valuers and geo-tagged within six months.
The agency described restitution as part of completing the “justice cycle” by returning illicit wealth to legitimate victims.
Recent crypto fraud cases
The ED’s focus on digital-asset investigations comes as Indian authorities continue to deal with several alleged crypto-related investment fraud cases.
Last month, the ED provisionally attached assets worth about ₹8.54 crore in the BTCFUND Bitcoin investment fraud case, taking total attachments in the matter to around ₹13.10 crore. The agency alleges that Hemant Ishwar Sharma lured investors through the Iceland-registered BTCFUND.IS website.
A separate case emerged in Tamil Nadu in August, involving the FQL app, which allegedly collected money by promising cryptocurrency-based returns. On August 31, the state police transferred six FIRs related to the case to the Economic Offences Wing for a detailed investigation.
In September 2026, a Bengaluru surgeon reported losing about ₹4.47 crore after being directed to a website presented as a cryptocurrency trading platform. According to the police complaint reported by The Times of India, the platform displayed purported profits of nearly ₹14 crore before additional payments were demanded for withdrawal.
These cases are separate from the ED’s broader restructuring, but they highlight the range of crypto-related investment fraud and digital-asset investigations being handled by Indian authorities.
What comes next
The ED’s new structure is scheduled to roll out from January 2027, with the agency targeting faster investigations, wider use of technology and stronger forensic capabilities.
For crypto-related cases, the conference indicates that the ED is looking beyond individual wallet transactions to a broader set of mechanisms involving DeFi, stablecoins, cross-chain transfers, mixers, privacy-focused assets and other blockchain-based services.
The roadmap also links digital investigations with faster prosecution, closer coordination between enforcement agencies and more active recovery of assets for victims.
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