India’s ED seizes over $390K in crypto money laundering raids

India’s Enforcement Directorate seized cryptocurrency worth roughly ₹3.35 crore (about $390,000) and froze bank balances tied to an online investment fraud and a work-from-home scam.

This seizure of illicit funds is the most recent move Indian authorities have taken in the fight against crypto-related crime and money laundering.

How did the ED track money from crypto scams?

Between the days of July 10 and 11 and across 19 premises; 16 in Tamil Nadu, two in Kerala and one in Srinagar, India’s Enforcement Directorate (ED) searched and seized cryptocurrency worth roughly ₹3.35 crore (about $390,000).

Alongside the digital assets, investigators took ₹14.5 lakh ($17,300) in cash and put a freeze on accounts holding more than ₹40 lakh ($46,500).

The investigation started when two police complaints were filed in Tamil Nadu and Telangana. The ED explained that unidentified cyber fraudsters cheated victims out of ₹14.95 crore ($1.55 million) by promising high returns on bogus investments and fraudulent work-from-home schemes.

The proceeds from the scam were immediately layered through multiple “mule” bank accounts and shell companies, allegedly operated by Roshan Fiaz and his associates, before being converted into cryptocurrency and transferred across several crypto wallets to conceal the money trail.

The investigation found that some accounts receiving the defrauded funds were opened shortly before receiving the money and closed soon after transferring it further. The ED also found that ₹80,000 ($830) from the proceeds was sent to RK Electrical, a business linked to Fiaz, while other tainted funds were routed through businesses like Balmani Oil Store & Agency, JK Footwear and Team Well Engineering.

During the searches, the ED recovered and seized incriminating documents, digital devices, mobile phones, laptops, bank records, company incorporation papers, and details related to cryptocurrency wallets and exchange accounts. No arrests have been announced in this case yet, and the investigation is ongoing.

Is India serious about combating crypto crime?

Prior to this seizure, Cryptopolitan reported that a larger ED operation took place in Bengaluru where the agency searched six premises linked to five on-ramp and off-ramp payment firms, including Transak and Onramp.money’s parent company, Buyhatke, over suspected unauthorized cross-border transfers of more than ₹2,500 crore ($2.62 billion) under the Foreign Exchange Management Act. Investigators froze about ₹6 crore ($6.3 million) in that case.

Earlier still in December 2025, the ED raided 21 locations across Karnataka, Maharashtra and Delhi. The investigation was regarding the Prevention of Money Laundering Act and targeted fake trading sites that use celebrity images and promise inflated returns. 

That operation discovered illicit funds that this network, believed to have been operating since at least 2015, routed through crypto wallets, shell firms, peer-to-peer transfers and hawala channels.

Cryptopolitan reported a month later that the agency arrested two men in Gujarat over the BitConnect fraud, a case involving thousands of Bitcoin, extortion and Rs 2,170 crore (about $225 million) recovered from a main accused.