New Delhi: India’s financial crime watchdog, the Enforcement Directorate, has launched a sweeping investigation into 234 cybercrime cases, exposing a vast web of online betting rackets, cryptocurrency scams, predatory instant loan apps and digital impersonation frauds — with a significant portion of illicit money allegedly routed abroad through crypto channels, including to China.
Officials familiar with the probe said the cases together involve suspected proceeds of crime exceeding ₹34,855 crore, of which properties and financial assets worth ₹12,230 crore have already been attached or frozen under the Prevention of Money Laundering Act (PMLA).
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Investigators have so far arrested 141 people, filed 93 prosecution complaints before special courts and secured convictions in two cyber fraud cases, underscoring the scale of what authorities describe as one of the country’s largest coordinated crackdowns on digitally driven financial crime.
According to senior officials, the scams span a wide spectrum — from illegal gambling platforms and bogus forex trading apps to Ponzi investment schemes, fake stock trading portals, instant loan traps and so-called “digital arrest” rackets that coerce victims into transferring funds. Many operations, they said, were run through sophisticated networks of shell companies and payment intermediaries designed to mask money trails.
“The proceeds are first collected in multiple mule accounts operated by shell firms,” an official said. “Merchant categories are deliberately misdeclared to payment gateways and aggregators, which act as intermediaries and help break transaction links. From there, the money is layered through dozens of transfers to create a complex web that hides its origin.”
A key focus of the investigation is the use of cryptocurrencies and informal channels to move money overseas. Authorities have identified brokers who allegedly convert large sums into crypto to facilitate transfers to China, often under the guise of under-invoiced imports. In other cases, funds were remitted using fake foreign outward payments backed by fabricated import documents, royalty claims or freight charges.
The ED has also flagged the role of hawala operators who help route money abroad through alternative settlement mechanisms. Once outside India, the funds are either parked in overseas assets or reinvested — and in some instances, even cycled back into the country.
Officials said several cases revealed that hundreds of crores were eventually brought back to India in the form of foreign direct investment (FDI) or foreign portfolio investment (FPI), effectively laundering criminal proceeds into seemingly legitimate capital inflows.
The agency’s findings suggest that many of the masterminds behind these rackets are based outside India, making cross-border cooperation and crypto tracing central to the ongoing probe. “The need to remit funds abroad often arises because the principal accused are foreign residents. Crypto provides speed and anonymity, which criminals exploit,” an official added.
Beyond financial attachments, the ED is now intensifying coordination with other domestic agencies and international counterparts to dismantle the infrastructure supporting these scams — including illegal call centres, payment facilitators and crypto conversion networks.
Cybercrime specialists warn that the convergence of digital payments, loosely regulated online platforms and anonymous crypto channels has created fertile ground for organised fraud. Authorities, meanwhile, say the current action is only the beginning, with more arrests and attachments expected as investigators map transaction trails and identify beneficiaries.
For now, the crackdown sends a clear signal: India’s enforcement agencies are tightening the net around cyber fraud syndicates — and tracking every rupee, even when it vanishes into the blockchain.
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.
