New Delhi — The Enforcement Directorate (ED) has arrested Rohit Vij, one of the alleged masterminds behind a sprawling Chinese app-based investment fraud, during a series of raids conducted at five locations across Delhi. The arrest is part of an ongoing probe into a ₹903 crore money laundering case tied to the ‘Loxam’ investment app, which falsely claimed affiliation with a reputed French multinational company.
The investigation stems from a First Information Report (FIR) filed by Hyderabad Police in 2022, where victims alleged they were lured into investing large sums through the Loxam app, promised unrealistic returns, and later defrauded. The scheme, according to ED, was orchestrated by Chinese nationals working in tandem with Indian collaborators.
The app was part of a larger cross-border scam designed to exploit Indian investors through digital deception, using shell companies and complex financial layering mechanisms.
Shell Companies, Mule Accounts, and Fake Forex Dealers Used for Laundering
The ED’s probe uncovered that the proceeds of crime were funneled into Xindai Technologies Private Limited, a shell company set up in the name of an Indian national but operated under the instructions of a Chinese individual identified only as “Mr. Jack”.
Investigators revealed that Internet Banking credentials of the account holder were obtained and used to route the tainted funds through 38 mule bank accounts. These funds were then laundered through Delhi-based shell money changers, primarily Ranjan Money Corp and KDS Forex, both allegedly controlled and operated by Rohit Vij and his associates.
Within just seven months, these two firms had allegedly converted ₹903 crore of illicit funds into foreign currencies, including U.S. dollars and UAE dirhams, before channeling them to Chinese operatives via hawala routes—a parallel, informal banking network often used for money laundering.
In one instance, ₹171.47 crore was funneled specifically through Xindai Technologies, while the broader operation revealed significantly larger volumes.
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Rohit Vij in ED Custody; Investigations Expand Across Financial Ecosystem
Rohit Vij has now been placed in 5-day custody by the ED under the provisions of the Prevention of Money Laundering Act (PMLA) for further interrogation. Officials said they aim to trace the entire laundering network, identify additional beneficiaries, and uncover links to Chinese financial controllers operating behind the scenes.
The agency is also scrutinizing digital transactions, Forex regulatory violations, and potential breaches of FEMA guidelines, which regulate the flow of foreign currency in and out of India.
“The scam reflects an alarming pattern of foreign-led fraud networks exploiting India’s digital finance space through well-planned shell structures and informal remittance systems,” said an ED official involved in the case.
The arrest is being seen as a major breakthrough in dismantling cross-border fintech frauds, especially those involving bogus mobile apps, fictitious returns, and crypto-laced laundering tactics. The case also highlights the urgent need for tighter regulation of online investment platforms and forex exchanges.