India’s Enforcement Directorate has attached ₹8.46 crore in bank accounts and cryptocurrency wallets linked to a massive cyber-fraud scheme involving fake apps and investment scams. The operation laundered ₹285 crore through banking channels and platforms like CoinDCX, targeting victims nationwide.
-
ED’s Hyderabad office identifies fraud network using fake job and investment apps like NBC App and Power Bank App.
-
Scammers recruit via WhatsApp and Telegram, promising quick commissions through simulated e-commerce tasks.
-
Investigators trace ₹285 crore in proceeds, with ₹4.81 crore converted to USDT on CoinDCX using non-compliant accounts; 92 accounts frozen to curb money laundering.
Discover how India’s Enforcement Directorate is cracking down on cryptocurrency fraud in a ₹285 crore cyber scam. Stay informed on asset attachments and fraud tactics targeting investors. Learn protection tips now.
What is the Enforcement Directorate’s Investigation into Cryptocurrency Fraud in India?
India’s Enforcement Directorate (ED) is probing a large-scale cyber-fraud operation that laundered criminal proceeds through traditional banks and cryptocurrency platforms, attaching assets worth ₹8.46 crore. The scheme, uncovered by the Hyderabad Zonal Office, involved fake mobile apps and e-commerce sites defrauding victims of ₹285 crore across states. This action under the Prevention of Money Laundering Act (PMLA) aims to dismantle the network and recover funds.
How Did the Cyber-Fraud Network Operate Using Fake Apps and Crypto?
The fraud began with complaints filed by Kadapa Police under Section 420 of the Indian Penal Code and relevant IT Act sections, revealing a coordinated scheme across apps like NBC App, Power Bank App, HPZ Token, and RCC App. Scammers used WhatsApp and Telegram to lure recruits with promises of easy earnings through task-based activities on bogus e-commerce platforms. Victims were instructed to fund digital wallets via UPI transfers to shell entity accounts, building false trust with small initial payouts before blocking withdrawals and demanding additional fees.
Investigators found the network escalated by encouraging referrals for commissions, expanding its reach. Funds from over 30 primary bank accounts, active for brief periods, were quickly moved to 80 secondary accounts to evade detection. According to ED findings, ₹285 crore in illicit proceeds were cycled through these channels. A significant portion involved cryptocurrency: fraudsters purchased USDT on Binance’s peer-to-peer marketplace using dirty money, while sellers on WazirX, Buyhatke, and CoinDCX flipped USDT for profit. Specifically, ₹4.81 crore was converted on non-KYC CoinDCX accounts via unverified third-party transfers.
ED officials, as per their official statement, highlighted the use of traditional banking alongside crypto to obscure trails. “This operation exploited the anonymity of digital assets while relying on conventional systems for initial collections,” noted an agency spokesperson in the investigation update. The attachments cover 92 bank accounts, including those tied to CoinDCX and various crypto wallets, preventing further dissipation of assets.
Broader context from financial regulators like the Reserve Bank of India (RBI) underscores rising cyber threats in digital finance. In 2025, such scams have surged by over 50% year-on-year, per RBI reports, with cryptocurrency’s volatility attracting fraudsters. The ED’s probe demonstrates coordinated enforcement, collaborating with state police to map the entire ecosystem.
Frequently Asked Questions
What Are the Key Apps Involved in This Indian Cryptocurrency Fraud Case?
The primary apps implicated include NBC App, Power Bank App, HPZ Token, and RCC App, alongside other task-based earning tools. These platforms posed as legitimate job or investment opportunities, collecting funds via UPI and bank transfers before vanishing. The ED’s investigation links them to a ₹285 crore scam affecting victims in multiple states.
How Can Indian Investors Protect Themselves from Crypto-Linked Cyber Frauds?
To safeguard against such scams, always verify app legitimacy through official app stores and regulatory approvals from bodies like SEBI or RBI. Avoid unsolicited investment offers on social media, use KYC-compliant exchanges like CoinDCX for transactions, and report suspicious activity to cybercrime portals immediately. Enabling two-factor authentication on wallets adds a crucial layer of security against unauthorized access.
Key Takeaways
- Scale of the Fraud: The operation defrauded ₹285 crore using fake apps and e-commerce sites, routing funds through banks and crypto platforms to launder proceeds.
- ED’s Response: Attachments of ₹8.46 crore across 92 accounts, including CoinDCX-linked balances and wallets, under PMLA to freeze illicit assets.
- Prevention Insight: Investors should prioritize verified platforms and report scams promptly to authorities like the ED or local police for swift action.
Conclusion
India’s Enforcement Directorate’s investigation into cryptocurrency fraud exposes a sophisticated cyber network blending traditional banking with digital assets like USDT on platforms such as CoinDCX and Binance. By attaching ₹8.46 crore and tracing ₹285 crore in proceeds, the agency is sending a strong message against money laundering. As crypto adoption grows in India, staying vigilant and adhering to regulatory guidelines will be essential. Investors are urged to educate themselves on scam tactics and support enforcement efforts for a safer financial landscape ahead.
