India’s ED Cracks Crypto Fraud Network With Raids at 9 Sites
India's Enforcement Directorate just slammed the brakes on a sprawling crypto fraud operation—raiding nine locations in a coordinated crackdown that's sending shockwaves through the digital asset space.
Operation Unmasked
Authorities didn't just knock on doors—they kicked them in. The raids targeted a network accused of siphoning funds through a maze of crypto wallets and shell companies. Think of it as financial whack-a-mole, only with search warrants and forensic accountants.
The Paper Trail Goes Digital
Forget hidden ledgers—this investigation tracked digital breadcrumbs across blockchain networks. The ED's tech teams traced transactions through multiple layers of obfuscation, proving that even decentralized systems leave fingerprints when real-world enforcement gets serious.
Regulatory Reckoning
This isn't just about busting bad actors—it's a warning shot across the bow of India's entire crypto ecosystem. As regulators worldwide struggle to police borderless finance, this operation demonstrates that national agencies can still bring the hammer down when they follow the digital money.
The irony? While traditional banks get fined billions for systemic failures, crypto's 'decentralized rebels' keep getting caught by old-fashioned police work. Maybe Satoshi should have included a chapter on evading search warrants in the whitepaper.
Fake Crypto Accounts Used to Funnel Investor Funds
Investigators claimed that the accused created false cryptocurrency trading accounts. The investors were convinced to deposit their funds since they guaranteed high and steady returns. The money was then channeled to personal accounts in possession of the suspects.
The government officials said the funds were subsequently shifted using the accounts of family members and close associates. This was supposedly done to cover up transaction tracks. This is a typical trick in financial actions.
Investigators also suggested that part of the money that was diverted was used to purchase properties. The relatives registered these assets to prevent any direct connection to the accused. The authorities indicated that the results confirm the claims of intentional hiding.
The case also contributes to a chain of crypto-related inquiries conducted by the agency in December. On December 13, the officials raided eight sites in Himachal Pradesh and Punjab. That was an operation against a ₹2,300-crore Ponzi scheme.
Crackdown Targets Dozens of Fake Crypto Websites
Authorities claimed that the previous plan entailed several counterfeit trade platforms. Authorities claimed that investors provided money to pay returns to new entrants. The use of shell entities and token price manipulation was also reported by investigators.
Officials announced another national crackdown days later on at least 26 fake crypto investment websites. These services relied on images of celebrities, AI-created content, and low initial payouts to be credible. Investigators used social media and messaging services to reach out to the victims.
Proceeds of those schemes passed through domestic and overseas accounts, said the investigators. Part of the money was channeled through crypto wallets and hawala systems. Investigators have since discovered some of the assets acquired using the proceeds.
Authorities claimed that the current measures are a follow-up to fighting Internet-based finance fraud. The agency mentioned that it will proceed with investigations as digital investment frauds increase in size and complexity.
