- विज्ञापन -
Chennai: The Chennai zonal office of the Directorate of Enforcement (ED) has arrested two individuals involved in a “digital arrest” scam. The suspects are accused of defrauding victims through mule accounts, converting illegal cash into cryptocurrency, and sending it abroad. The investigation was initiated following a complaint from a senior citizen who reported being swindled out of Rs 33 lakh.
According to the ED, the two arrested played a crucial role in managing these mule accounts, facilitating the conversion of illicit funds into cryptocurrency for overseas transfers. One suspect was apprehended in Kolkata, while the other was caught in Delhi.
The ED has stated that the accused also exploited Cash Deposit Machines (CDMs) to deposit cash into companies providing fintech services. These funds were subsequently funneled into individual accounts to obtain cryptocurrency, which was then used to hide and transfer the proceeds of crime abroad, aided by accomplices using foreign phone numbers.
The investigation uncovered a network of layered mule bank accounts used for routing fraudulent funds. As part of the inquiry, the ED conducted searches at over 20 locations across several states, including West Bengal, Madhya Pradesh, Uttar Pradesh, Gujarat, and Maharashtra. They seized multiple mobile devices, laptops, and other electronic equipment containing significant incriminating evidence, along with cryptocurrency in the forms of BTC and USDT.
The ED revealed that the accused had established a complex system for withdrawing cash from mule accounts, converting it to cryptocurrency, and transferring funds internationally. The agency also identified “major lapses” by several fintech companies for not adhering to Know Your Customer (KYC) regulations. It is investigating the involvement of these companies, alongside their distributors, retailers, and associated bank accounts, in accepting cash deposits from fraudulent entities and individuals, which may involve substantial amounts of illicit money derived from digital crimes.
