Key Highlights
- The ED arrested Sohel Akthar in Kolkata on September 28 under the Prevention of Money Laundering Act.
- Investigators allege a group impersonating CBI officials and judicial authorities extorted ₹7 crore from businessman S.P. Oswal.
- The agency alleges Akthar arranged mule bank accounts and received cryptocurrency commissions through Binance accounts.
The Enforcement Directorate (ED) has arrested Sohel Akthar, also known as Raju, in connection with an alleged digital arrest scam involving businessman S.P. Oswal and approximately ₹7 crore in suspected proceeds.
According to an ED press release issued October 1, Akthar was arrested on September 28 in Kolkata under the Prevention of Money Laundering Act (PMLA) following searches at three locations in West Bengal. He was subsequently produced before the Special PMLA Court in Jalandhar, which granted the ED seven days of custody until October 6.
The case originated from an FIR registered by the Cyber Crime Police Station in Ludhiana. The ED said nine additional FIRs involving similar alleged digital arrest offences connected to the group were later incorporated into the investigation.
ED alleges Akthar supplied mule accounts
According to the agency, Akthar helped arrange bank accounts that were allegedly used to receive and move money generated through the fraud.
Some of the accounts were allegedly linked to Rigglo Ventures Private Limited and Frozenman Warehousing & Logistics. The ED said these accounts were provided to other members of the alleged network, including individuals operating from outside India.
Investigators further allege that Akthar received commissions in virtual digital assets through his Binance account or accounts operated by associates.
Another accused, Arpit Rathore, was allegedly involved in a similar arrangement. The ED said Rathore received cryptocurrency commissions through a Binance account after providing mule accounts to individuals in Cambodia and Vietnam.
Money allegedly routed through multiple accounts
The ED alleges that members of the network obtained bank accounts from individuals by offering loans or employment opportunities. The accounts were then allegedly used to receive and transfer funds before the money was moved through additional accounts and entities.
According to the agency, some transactions involved transfers ranging from approximately ₹2 lakh to ₹5 lakh, followed by cash withdrawals.
The ED alleges that some of the cash was subsequently used to acquire virtual digital assets, which were transferred to accounts associated with foreign nationals after commissions were deducted.
These transactions form part of the agency’s money-laundering investigation.
Investigators identify access to bank messages
During the searches, investigators also identified an application called AMMFORWARD. The ED said certain mobile phones contained pre-installed APK files and SIM cards associated with bank accounts belonging to Rigglo Ventures and other entities.
According to the agency, the applications allegedly allowed associates in Nepal to access one-time passwords (OTPs) and SMS messages linked to the accounts.
Investigators allege that this access enabled transactions to be carried out without the account holders directly managing the accounts. The ED also said end-to-end encrypted messaging applications were allegedly used to share bank-account information with associates outside India.
Three people arrested in investigation
Akthar’s arrest brings the total number of arrests in the investigation to three, according to the ED.
- Rumi Kalita — arrested December 23, 2025
- Arpit Rathore — arrested December 31, 2025
- Sohel Akthar @ Raju — arrested September 28, 2026
The agency also issued a provisional attachment order for ₹1.76 crore on February 14, 2026.
A prosecution complaint was filed on February 19 against Kalita, Rathore, Anand Chaudhary, Atanu Chaudhary, and Frozenman Warehousing & Logistics.
Crypto transfers under ED investigation
The cryptocurrency transactions are being examined as part of the wider probe into the alleged movement of proceeds. Investigators are looking at Binance-linked accounts and virtual digital asset transfers to identify alleged commissions and follow the subsequent movement of funds.
The investigation also covers the use of bank accounts, corporate entities, and overseas channels allegedly connected to the network. The ED’s allegations have not been established in court, and the investigation remains ongoing.
ED has probed other crypto-linked fraud cases
The investigation follows other ED cases involving alleged cryptocurrency and digital investment fraud.
In September, the agency arrested two people and searched 11 premises in an alleged ₹40 crore Hashpe crypto fraud case. Investigators alleged that the scheme was promoted through social media campaigns and events featuring Bollywood celebrities.
In August, the ED provisionally attached an additional ₹8.54 crore in assets in the BTCFUND Bitcoin investment fraud case, taking total attachments in that investigation to ₹13.10 crore.
Those investigations involve separate alleged schemes. In each case, the agency has examined the movement of suspected proceeds through financial accounts and cryptocurrency transactions.
The probe into the alleged ₹7 crore digital arrest case remains ongoing.
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