The Directorate of Enforcement has opened a money laundering probe into an alleged cryptocurrency investment fraud worth about $35 million. The amount equals more than Rs. 300 crore.
The case centers on Bengaluru-based crypto influencers who allegedly promised discounted token allocations to overseas investors. Investigators say the tokens were either partly delivered or never supplied.
The ED’s Bengaluru Zonal Office began the probe under the Prevention of Money Laundering Act. The action followed a South Andaman Cyber Crime Police FIR.
A Dutch commercial entity filed the original complaint after losing funds in over-the-counter digital asset transactions. The FIR first estimated losses near $10 million.
Further financial checks later placed the suspected fraud above $35 million. The ED also found possible links to several foreign accounts.
According to the agency, the accused promoted themselves as crypto ‘key opinion leaders’ and industry insiders. They used Telegram, WhatsApp, Instagram, websites, and in-person meetings.
They allegedly claimed access to ‘guaranteed, steeply discounted direct token allocations’ from major blockchain projects. Named projects included MultiverseX, Kava, BEAM, GRASS, SUI, VANA, and AGLD.
Such private placements usually occur before public exchange listings, which can make promised discounts attractive to early buyers. The ED says the accused used false credentials and claimed direct ties with blockchain developers to support those offers. Investors then transferred digital assets instead of using regulated payment channels.
Investigators say the group first completed smaller deals without problems. This approach helped build trust before investors transferred larger amounts.
The ED alleges that Mohammed Waseem, Saurabh Diwan, and Vaibhav Gupta handled investor contact and token promises. The digital assets then moved through several wallets.
Investigators traced large parts of the funds to Ravindra K in Bengaluru. The agency identifies him as the suspected operator behind the OTC deals.
After receiving multi-million-dollar investments, the accused allegedly stopped delivering tokens when crypto prices rose. Investors then lost access to the promised allocations.
The ED says the group used part of the proceeds for properties, businesses, personal costs, and other investments. Authorities continue checking those transactions.
Meanwhile, the agency believes more foreign companies and wealthy investors may have suffered similar losses. Many have not yet filed formal complaints.
This gap may affect the final size of the case. Investigators are reviewing offshore wallets and related payment records for additional transfers.
The ED carried out searches at several Bengaluru locations on July 18 and 19. Officers seized digital devices, emails, wallet records, and encrypted account details. The searches also led to the seizure of virtual assets worth about 8,700 USDT. Tether’s USDT is a stablecoin linked to the US dollar.
Officials say the seized material may show how funds moved between wallets and personal accounts. The data may also identify more victims. The agency is now tracing additional offshore addresses and checking possible links with overseas entities. It is also seeking to freeze assets connected to the case.
International cooperation may become necessary as the suspected transactions crossed several countries. The ED continues to examine the full network.
No court has convicted the named individuals in this case. The allegations remain under investigation under India’s anti-money laundering law.
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