The Hyderabad zonal office of the Enforcement Directorate (ED) has seized Rs 8.46 crore held across 92 bank accounts, including those linked to CoinDCX and a few crypto wallets, as part of a money laundering probe into a nationwide cyber fraud racket built on fake e-commerce platforms and bogus investment apps.
The alleged proceeds of the crime, worth Rs 285 crore, were initially deposited into 30 short-lived bank accounts, many of which were folded within 15 days. The funds were then transferred to over 80 secondary bank accounts to evade detection or account freeze by banks and law enforcement agencies, ED claimed.
A significant portion of the scam proceeds was later converted into cryptocurrency or channelled through hawala networks within India.
The cyber fraud money trail analysis by ED showed that the fraudsters frequently bought Tether (USDT) on Binance’s peer-to-peer marketplace using third-party transfers sourced from crime proceeds. Sellers on platforms such as WazirX, Buyhatke and CoinDCX sold USDT to scamsters at marginally higher prices while accepting unverified payments.
According to the central agency, the scam operators allegedly converted USDT worth Rs 4.81 crore using CoinDCX using non-KYC accounts.
Modus Operandi of the Cyber Fraud
The ED investigation stems from multiple FIRs registered by the Kadapa Police in Andhra Pradesh under section 420 (cheating) of the Indian Penal Code and other IT Act offences, which were found to be connected to several similar complaints across the country.
The probe unearthed a large-scale fraud network operated through fake investment and part-time job apps such as the NBC App, Power Bank App, HPZ Token, RCC App and Making App, which lured victims with the promise of high commissions and quick profits for performing simple tasks online.
Fraudsters targeted individuals through WhatsApp and Telegram groups and bulk SMS campaigns. Victims were asked to register on fake apps and deposit money into their app wallets, typically via UPI payments to bank accounts linked to the seller companies.
“They were instructed to perform simple tasks such as buying or selling items on fictitious e-commerce websites, after which reward points or earnings would appear in their online wallets. Before participating in any activity, however, the victims were required to deposit money into their app wallets,” a statement by ED read.
In order to gain the trust of gullible investors, scamsters initially credited small profits into their bank accounts, encouraging them to deposit higher amounts for greater returns. Once substantial sums had accumulated, withdrawals were blocked, and victims were falsely asked to pay additional charges for taxes or other regulatory approvals.
The Crisis at CoinDCX
The ED investigation comes at a time when CoinDCX has been dousing fires on multiple fronts, from theft to exits by multiple senior executives. In July 2025, the exchange
Source link
Disclaimer
We strive to uphold the highest ethical standards in all of our reporting and coverage. We blogs.grocliq.com want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.
Website Upgradation is going on for any glitch kindly connect at [email protected]
