India’s federal financial crime-fighting agency is doubling down on its crypto policing efforts after discovering a major investment fraud that trafficked in crores of rupees using fake online trading platforms. The case is another example of how crypto scams still prey on retail investors with false promises and fake platforms.

The ED said they carried out searches at nine places on December 24. The raids took place in Ambala, Kurukshetra, Karnal, and Chandigarh. This was as per the Prevention of Money Laundering Act.

According to the authorities, investigators found incriminating documents and digital devices in the raids. The police also confiscated 18 bank accounts worth over ₹22 lakh of supposed proceeds of crime. Furthermore, other places recovered cash worth ₹4 lakh.

About ₹3 crore worth of immovable assets were also discovered through this probe. Investigators believe that these properties were bought at the expense of money that had been acquired by defrauding investors. The tracing of assets is being pursued so that the entire scope of so-called laundering can be identified.

The case itself is based on a first information report that had been registered by Haryana Police. The complaint mentioned four names: Vikas Kalra, Tarun Taneja, Kapil Kumar, and Pawan Kumar. They are charged with the running of a fraud organization called crypto World Trading Company.

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.

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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.

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