HYDERABAD: The Enforcement Directorate (ED), Hyderabad Zonal Office, has provisionally attached Rs 8.46 crore held in 92 bank accounts — including those linked to CoinDCX and several crypto wallets — under the Prevention of Money Laundering Act, 2002. The attachment is part of a probe into a large cyber fraud involving fake e-commerce platforms, deceptive investment schemes and money-making mobile apps.
The investigation began after multiple FIRs were registered by Kadapa police in Andhra Pradesh under IPC Section 420 and IT Act Sections 66-C and 66-D. The ED later found similar complaints nationwide, revealing a widespread scam network running fraudulent part-time job offers and investment apps.
According to the ED, fraudsters targeted victims via WhatsApp, Telegram and bulk SMS campaigns, offering high commissions and quick returns. Users were asked to register on fake apps that mimicked e-commerce or investment platforms and deposit money through UPI into accounts linked to shell entities. Small profits were credited initially to build trust, after which victims were encouraged to invest larger sums. Withdrawals then failed repeatedly.
When victims contacted support agents, they were told to pay additional charges such as taxes or regulatory fees. Even after paying, withdrawals were blocked, apps crashed and websites vanished. Victims were also urged to recruit others with promises of higher commissions.
The ED said proceeds of crime worth Rs 285 crore were routed through more than 30 temporary bank accounts, each active only for a few days before funds were moved to over 80 secondary accounts to evade detection. A significant portion was converted into cryptocurrency or transferred through hawala channels.
The probe found that scammers frequently bought USDT (Tether) via peer-to-peer trades on Binance using third-party payments generated from the fraud. Sellers on platforms like WazirX, Buyhatke and CoinDCX allegedly purchased USDT at lower rates and sold it at a margin to the fraudsters on Binance P2P, accepting payments from crime-linked accounts. The ED also found that USDT worth Rs 4.81 crore was converted through CoinDCX using non-KYC accounts and unverified third-party transactions.
Further investigation is underway.