The Enforcement Directorate (ED) has frozen bank funds worth ₹18.4 crore across 129 bank accounts as part of a money laundering investigation linked to an alleged online investment fraud that authorities say duped investors through fake stock market and Initial Public Offering (IPO) schemes.
The action followed search operations conducted across four states, including Mumbai and Thane, where investigators examined the flow of funds generated through the alleged fraud network. According to the ED, investors were lured through social media platforms and WhatsApp groups with promises of high returns from stock market investments and IPO opportunities.
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Investors Allegedly Lured Through Social Media and Apps
Investigators said victims were directed to invest through mobile applications identified as “CHC-SES”, “ALICE” and “ESCORTS”. The agency alleged that these applications displayed substantial profits and growing returns after investments were made, creating the impression of successful trading activity.
However, according to the ED, investors were allegedly prevented from withdrawing their funds. Instead, they were reportedly asked to make additional payments in the name of taxes and other charges when they attempted to access their money.
The alleged scheme forms part of multiple cases registered by the Cyber Crime Police Station under the Bidhannagar Police Commissionerate in West Bengal. The cases relate to suspected cyber fraud involving fake investment schemes targeting members of the public.
Searches Conducted Across Multiple Cities
The searches were carried out between June 1 and June 4 at eight locations in Mumbai, Thane, Bengaluru and Gurugram. During the operation, investigators examined entities that allegedly played a role in facilitating financial transactions linked to the suspected fraud.
The companies covered during the searches included PayX Digital Payment Pvt Ltd, Smootphe Digital Pvt Ltd, Kinsen Business Solution Pvt Ltd, Safexpay Technologies Pvt Ltd, Gyan Kuber Ltd and Decentro Tech Pvt Ltd.
During the operation, officials froze bank balances amounting to ₹18.4 crore spread across 129 bank accounts and also froze certain lockers. The agency said various incriminating documents and digital evidence were seized and are being examined as part of the ongoing investigation.
Probe Examines Alleged Laundering Network
According to the ED, the investigation has revealed that the proceeds of crime generated through the alleged cyber fraud were routed through a network of mule entities, charitable trust accounts and payment gateway companies.
Officials said transaction patterns indicated the receipt of funds from suspected mule accounts, followed by the layering of funds through multiple entities and the transfer of large sums through payment gateways. The agency stated that these transactions suggested attempts to conceal and launder the proceeds of crime.
The ED further said the investigation has uncovered common directors, shared business premises, financial linkages and fund transfers among several entities under scrutiny. Officials are continuing to examine the role of various accused persons and organisations as the investigation progresses.
