The Directorate of Enforcement has uncovered a massive cryptocurrency over-the-counter investment scam valued at an estimated $35 million, or over ₹300 crore, exposing a network of self-styled crypto influencers who allegedly cheated international investors. Operating out of Bengaluru, the ring lured foreign entities with promises of heavily discounted digital tokens that were either only partially delivered or withheld entirely after multi-million-dollar investments were collected.
Modus Operandi of Key Opinion Leaders
Investigators from the ED’s Bengaluru Zonal Office initiated a money laundering probe under the Prevention of Money Laundering Act following an initial First Information Report registered by the Cyber Crime Police Station in South Andaman. The case originated from a formal complaint filed by a Dutch commercial entity alleging extensive fraud in over-the-counter digital asset transactions. While initial police estimates pegged the fraud at approximately $10 million, subsequent financial intelligence gathered by central agencies revealed that the actual scope of the operation exceeded $35 million across multiple foreign accounts.
The accused allegedly projected themselves as high-profile key opinion leaders and industry insiders across popular social platforms including Telegram, WhatsApp, and Instagram, as well as through dedicated websites and in-person industry summits. Claiming exclusive partnerships with prominent blockchain developers, they offered unsuspecting investors preferential access to discounted token allocations for popular virtual assets prior to their public exchange listings. To build trust, the group initially completed smaller transactions smoothly, establishing a facade of credibility before persuading victims to commit substantially larger capital sums.
Money Trail and Enforcement Actions
Financial forensic analysis indicates that the multi-million-dollar proceeds were routed through a complex web of cryptocurrency wallets to Ravindra K, a Bengaluru-based operative identified by investigators as the primary mastermind behind the over-the-counter operations. The agency has formally named key suspects, including Mohammed Waseem, Saurabh Diwan, and Vaibhav Gupta, who allegedly managed investor outreach and token distribution promises. When global cryptocurrency market prices rallied, the accused abruptly ceased delivering the contracted tokens, diverting the collected digital assets toward personal investments in luxury properties, business ventures, and personal expenditure.
Following targeted intelligence gathering, enforcement officials executed coordinated raids across multiple premises in Bengaluru, seizing digital storage devices, email repositories, encrypted wallet credentials, and virtual assets totaling 8,700 USDT. Agency officials suspect that numerous other foreign institutional investors and high-net-worth individuals were defrauded through identical over-the-counter schemes but have yet to register formal criminal complaints. The investigation remains ongoing as authorities work alongside international law enforcement partners to trace additional offshore wallet addresses and freeze diverted assets.
