India’s Enforcement Directorate (ED) on Tuesday detailed how an elaborate network of mule bank accounts, shell companies and cryptocurrency channels was used to launder proceeds from cyber-enabled financial frauds worth over Rs 12,000 crore, describing the crime ecosystem as “organised like a corporation” with specialised verticals.
Addressing the National Conference on Tackling Cyber-Enabled Frauds and Dismantling the Ecosystem, organised by the CBI and the Indian Cyber Crime Coordination Centre (I4C), ED Joint Director Robin Gupta said the agency has so far attached assets worth Rs 12,229 crore in connection with a sprawling transnational cyber investment scam.
The investigation, built on multiple FIRs registered across India, has already resulted in eight arrests and the filing of a prosecution complaint.
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Gupta said the fraud syndicates operated out of secured compounds in the Thailand–Laos–Myanmar Golden Triangle region, running tightly coordinated operations that mirrored corporate structures. Separate teams handled SIM card procurement, recruitment of mule account holders, human trafficking, and conversion of illicit funds into cryptocurrency to evade law enforcement tracking.
According to the ED, victims across India were lured through fake IPO allotment messages, fraudulent stock investment platforms and mobile apps promising unusually high returns — a method globally referred to as “pig-butchering scams”, where trust is built over time before large sums are siphoned off.
“These networks function like multinational enterprises,” Gupta told the conference. “There are dedicated departments for onboarding victims, managing mule accounts, routing funds through shell entities and finally converting money into crypto to erase trails.”
Officials said thousands of mule accounts were opened using forged or rented identities, allowing scam operators to rapidly move money across banks before transferring it overseas or into digital wallets. Shell companies were then used to layer transactions, making it harder for agencies to trace the original source of funds.
The ED also flagged the growing use of cryptocurrencies as a critical challenge, noting that quick cross-border transfers and anonymisation tools are increasingly being exploited by cyber criminals.
Investigators revealed that many Indian victims were added to messaging groups posing as investment communities, where fake success stories and manipulated screenshots were circulated to create credibility. Once victims deposited initial amounts, they were encouraged to invest larger sums, only to find their accounts blocked when they attempted withdrawals.
The agency said it is working closely with foreign counterparts to track assets parked abroad and dismantle the infrastructure supporting these scams. Coordination with banks, telecom operators and crypto exchanges has also been stepped up to freeze suspect accounts and wallets in real time.
Officials warned that cyber fraud is no longer limited to isolated actors but has evolved into an organised global crime industry powered by technology, cheap labour and porous borders.
The conference brought together senior officers from central and state agencies to discuss strategies for disrupting the cyber fraud ecosystem, strengthening intelligence sharing and tightening controls around SIM issuance, bank onboarding and digital asset platforms.
Gupta urged greater public awareness, saying early reporting of suspicious investment offers and unsolicited IPO messages could significantly reduce losses.
With cyber-enabled financial crimes rising sharply, enforcement agencies said they are prioritising preventive measures alongside prosecutions, including tighter KYC norms, faster inter-agency data sharing and enhanced monitoring of crypto transactions.
The ED said further arrests and asset seizures are likely as investigations expand into linked networks operating across multiple jurisdictions.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
