ED Unveils Major Money Laundering Syndicate, Conducts Multi-City Raids, Seizes Rs. 47 Lakh Cash and Crypto Worth Rs. 1.36 Crore
(Judicial Quest News Network)
The Directorate of Enforcement (ED), Headquarters, conducted extensive search operations between November 28 and November 30, 2024, across 13 locations in Delhi, Gurugram, Jodhpur, Jhunjhunu, Hyderabad, Pune, and Kolkata, under the Prevention of Money Laundering Act (PMLA), 2002. The raids led to the recovery of significant incriminating evidence, including documents, cheque books, ATM cards, PAN cards, digital signatures, Trust Wallet secret phrases, and unexplained cash totaling Rs. 47 lakh. Additionally, crypto assets worth Rs. 1.36 crore in USDT were seized from a private wallet, while several bank accounts were frozen.
The investigation, initiated by ED based on two FIRs filed by the CBI’s Economic Offences Wing in Delhi, pertains to a massive cyber fraud involving Rs. 640 crore generated through online betting, gambling, part-time job schemes, and phishing scams. The illicit funds were routed through over 5,000 mule accounts across India and subsequently laundered via the UAE-based payment platform “PYYPL.” Some of the stolen money was withdrawn in Dubai using Indian bank ATM cards.
The ED’s probe has uncovered a complex network involving Chartered Accountants (CAs), Company Secretaries (CS), and Crypto Traders working together to launder the proceeds of crime. Among those arrested were Chartered Accountants Ajay and Vipin Yadav and Crypto Trader Jitendra Kaswan. Investigations also revealed a large-scale money laundering operation involving handlers abroad who used encrypted messaging apps to guide the opening of mule accounts, cash circulation, and crypto purchases.
During a raid at the residence of key accused, CA Ashok Kumar Sharma, the ED team faced violent resistance, which led to a police complaint and the filing of an FIR by Delhi Police. Following the incident, Delhi Police arrested Radhe Shyam Sharma, the brother of Ashok Kumar Sharma, who remains absconding.
Ongoing investigations continue to analyze over 2,000 documents detailing financial transactions and cryptocurrency acquisitions, as the ED works to dismantle this extensive criminal operation.
