On Wednesday, July 2, 2025, the Enforcement Directorate (ED) conducted a series of coordinated raids across multiple locations in Delhi, targeting individuals and corporate entities believed to be involved in a massive ₹903 crore cyber-enabled financial fraud. At the center of the investigation is a company named Xindai Technologies Pvt Ltd, which officials allege operated as a front for laundering money under the guise of investment schemes.
According to officials, the operation was part of a broader money laundering investigation under the Prevention of Money Laundering Act (PMLA). Preliminary findings suggest that the company lured unsuspecting members of the public into fraudulent investment opportunities, and then routed their funds through Full-Fledged Money Changers (FFMCs) to obscure the money trail.
The ED’s action follows rising concerns about cross-border digital financial fraud, particularly those involving Chinese-controlled shell firms operating on Indian soil. Five locations linked to Xindai Technologies were searched, and the agency is now scrutinizing banking trails, digital footprints, and communications logs.
Chinese Link and International Scope
What has intensified scrutiny in this case is the involvement of a Chinese national, currently under investigation for orchestrating the alleged fraud. Sources say that the foreign national acted in coordination with Indian accomplices to establish and run the dummy corporation, targeting Indian investors under the pretense of legitimate ventures.
The fraud, ED officials believe, was not just limited to mis-selling fake investments but was part of a larger cybercrime ecosystem involving phishing operations, mule accounts, and crypto-wallet conversions to launder proceeds and send them offshore.
Investigators are probing whether Xindai Technologies served as a node in a pan-Asian fraud syndicate, exploiting India’s booming fintech space, the trust in digital payments, and regulatory gaps in money changing and intermediary layers. The role of FFMCs is especially critical, as they allegedly acted as conduits for converting and transferring illicit funds, bypassing formal banking scrutiny.
Enforcement Response and Public Implications
The ED’s action comes amid an uptick in cyber-financial scams involving foreign-controlled entities and fraudulent app-based investment platforms. The probe into Xindai Technologies is now being positioned as a test case for India’s ability to clamp down on transnational cybercrime.
While no formal arrests have been made yet, officials confirmed that digital devices, financial records, and foreign exchange transactions have been seized during the raids. The ED is coordinating with the Ministry of Home Affairs, RBI, and cybercrime wings of Delhi Police to ensure inter-agency cooperation.
The case has prompted warnings to the general public about unverified investment schemes, especially those advertised through social media, messaging apps, and fake websites. The estimated fraud of ₹903 crore, officials say, may just be the tip of the iceberg—indicating a systemic risk in India’s digital financial space if not addressed decisively.