Hyderabad, November 21, 2025: The Enforcement Directorate (ED) has provisionally attached assets worth ₹8.46 crore in connection with a large-scale scam run through fake e-commerce and money-making mobile applications. The attached amount was traced to 92 bank accounts, multiple crypto wallets and accounts linked to platforms such as CoinDCX. The action follows a series of FIRs filed across several states and months of investigation that uncovered a sophisticated digital fraud network.
A countrywide web of fraudulent investment platforms
The case originated from FIRs registered in Kadapa, Andhra Pradesh, under charges of cheating and violations of the IT Act. As the probe expanded, investigators found similar complaints from several states, all pointing towards an organised racket operating through bogus online investment apps. According to ED officials, the fraudsters promoted platforms such as NBC App, Power Bank App, HPZ Token, RCC App and Making App, luring users with promises of high commissions for completing simple online tasks.
To build initial trust, the apps displayed small profits, encouraging victims to deposit larger amounts over time. However, once substantial funds accumulated, withdrawals were blocked under various pretexts, including “processing fees,” “tax charges,” or “regulatory clearances.” Eventually, the apps went offline, locking users out of their accounts with no customer support or recourse.
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Targeting users via WhatsApp, Telegram and bulk SMS
The ED’s investigation revealed that the syndicate primarily relied on WhatsApp groups, Telegram channels and bulk SMS campaigns to recruit unsuspecting users. Victims were asked to transfer money to app wallets through UPI payments, with the funds routed into accounts of shell firms created solely for the purpose of layering and laundering money.
The meticulously designed communication strategy ensured the fraudsters could reach hundreds of people daily, particularly targeting youth seeking part-time work, homemakers and small investors looking for quick earnings.
Money trail exposed: ₹285 crore routed through multiple layers
A deeper financial analysis conducted by the ED uncovered a money trail of nearly ₹285 crore, routed through a complex chain of bank accounts.
Key findings include Around 30 primary accounts were used to receive and hold funds for a short duration. Money was then swiftly moved to over 80 secondary accounts to avoid detection. A significant portion of the proceeds was converted into cryptocurrency, adding another opaque layer to the laundering process. Part of the funds was channelled through hawala networks, making the trail harder to trace.
The agency discovered regular purchases of USDT (Tether) through P2P transactions on platforms like Binance. Several sellers on exchanges such as WazirX, Buyhatke and CoinDCX allegedly accepted unverified, third-party payments while selling crypto tokens at slightly higher margins.
USDT worth ₹4.81 crore traded through non-KYC CoinDCX accounts
One of the most concerning revelations was that USDT worth ₹4.81 crore was purchased on CoinDCX through accounts that were not KYC-verified. This indicates a deliberate strategy to exploit loopholes in crypto platforms and evade financial monitoring systems. Investigators suspect that the fraudsters used mule accounts, fake identities and proxy users to navigate exchanges without triggering alerts.
ED’s continued action and public advisory
Based on the recovered evidence, the ED has provisionally attached ₹8.46 crore under the provisions of the Prevention of Money Laundering Act (PMLA). Officials said the crackdown is far from over, and more attachments, searches and arrests are expected as the investigation progresses.
The agency also issued an advisory urging citizens to exercise caution while interacting with online investment schemes, part-time job offers and unknown application links promising unusually high returns. Several victims across the country reportedly lost their life savings to these fraudulent platforms.
