New Delhi: The Enforcement Directorate (ED) has registered a money laundering case under the Prevention of Money Laundering Act (PMLA) in connection with an alleged ₹336 crore cryptocurrency investment fraud and launched an extensive investigation. During searches at multiple locations in Bengaluru, the agency seized 87,000 USDT. The case stems from an alleged crypto investment scam targeting a Dutch national, with investigators indicating that several other foreign investors may also have been defrauded.
According to the ED, the investigation was initiated on the basis of a First Information Report (FIR) registered at the South Andaman Cyber Crime Police Station. The complaint alleged that the accused collected substantial investments for cryptocurrency transactions but failed to deliver the promised digital tokens. Investigators found that the alleged delivery of the tokens was withheld after their market value increased, resulting in significant financial losses for the investor.
The ED has identified Ravindra K, a Bengaluru resident, as the alleged mastermind behind the fraud. While the original FIR estimated the fraud at approximately US$10 million, the agency’s investigation has revised the suspected value to around US$35 million (approximately ₹336 crore).
Searches conducted on July 18 and 19 focused on over-the-counter (OTC) cryptocurrency transactions involving several digital tokens, including MultiverseX, Kava, BEAM, GRASS, SUI, VANA, and AGLD, among others. According to the agency, these tokens were allegedly used in private crypto deals through which investments were collected from victims.
The preliminary investigation suggests that the accused gained investors’ confidence by promising timely delivery of digital tokens. However, after the market prices of the tokens increased, they allegedly failed to honour those commitments and retained the invested funds, causing substantial financial losses to the complainant.
During the searches, investigators also uncovered indications that the same network may have targeted several other foreign investors. The ED said many of the suspected victims have not yet filed formal complaints. Authorities are now working to identify additional victims and trace the complete financial trail of the alleged fraud.
Experts note that over-the-counter cryptocurrency trading involves direct transactions between private parties, typically outside regulated exchanges. The limited transparency and regulatory oversight associated with such transactions can make them vulnerable to financial fraud and money laundering schemes.
A Researcher at Algoritha Security said investors participating in cross-border private crypto transactions should independently verify the credibility of the platform, smart contracts, token distribution mechanisms and the background of counterparties before investing. Relying solely on promises of guaranteed token delivery or unusually high returns can expose investors to significant financial risks.
The ED said the investigation is continuing to trace the complete flow of funds, identify additional beneficiaries and locate assets allegedly derived from the proceeds of crime. The agency may initiate further legal action, including attachment of assets under the PMLA, if warranted by the investigation. Investigators believe the case could be part of a larger cross-border cryptocurrency fraud and money laundering network involving digital assets.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
