India’s Enforcement Directorate Identifies Crypto Route in Betting Probe

India’s Enforcement Directorate (ED) searched 20 premises in five cities in an online betting and cyberfraud probe, alleging cryptocurrency conversion was one of three routes used to move proceeds abroad.

The searches took place Oct. 13 in Mumbai, Pune, Mehsana, Surat and Hyderabad under the Prevention of Money Laundering Act, 2002. The investigation covers two cases involving All Panel Exchange and MGM91. The ED alleges complainants were induced to deposit money through the platforms and then cheated.

The ED alleges money was routed through intermediary accounts before reaching a Pune company founded by Ram U. Ramdhani. Edsom Fintech developed and operated its iPaisa payment platform. The ED alleges the service enrolled more than 200 purported shell entities and fronts as merchants for betting, gaming and cyberfraud businesses and their agents.

Two other alleged methods involved inflated trade invoices and cash drawn from mule accounts opened using the names of Agricultural Produce Market Committee units. The ED also alleges people based in Dubai directed some platform operators, while certain cooperative banks provided infrastructure to collect and layer funds.

Investigators seized documents and digital devices during the searches and ordered multiple related bank accounts frozen. Ramdhani, arrested during earlier searches, remains in judicial custody.