ED Freezes Accounts in Rs 58 Cr Gaming Fraud Probe
By Business Desk
India’s Enforcement Directorate freezes over 100 bank accounts and seizes assets in a Rs 58 crore money-laundering probe linked to online gaming fraud.
The Enforcement Directorate (ED) has frozen over 100 bank accounts and seized Rs 30.30 lakh in cash as part of an ongoing money-laundering investigation into an online gaming and betting fraud. This action follows searches conducted on August 18 across 12 premises in Nagpur, Gondia, and Ahmedabad.
Operating under the Prevention of Money Laundering Act (PMLA), 2002, the ED’s operations uncovered a sophisticated network. The probe also led to the freezing of mutual funds and shares, along with the seizure of luxury vehicles and digital devices.
Key Seizures and Freezes
- Frozen bank accounts: Over 100
- Cash seized: Rs 30.30 lakh
- Mutual funds and shares frozen: Approximately Rs 5 crore
- Bank lockers frozen: 2
- Luxury vehicles seized: 3, valued at approximately Rs 1.70 crore
- Digital evidence seized: 11 mobile phones and 1 laptop
- Immovable property documents seized: Valued at approximately Rs 16.50 crore
- Total fraud amount: Approximately Rs 58.42 crore
The investigation, initiated by an FIR from the Cyber Crime Police Station, Nagpur City, revealed how the accused lured a complainant. They promised high returns for investments in online gaming within a short timeframe.
Fraudulent Gaming Tactics
- Complainant directed to illegal gaming platforms.
- Repeatedly urged to make further deposits despite losses.
- Gaming platforms manipulated with technical errors when complainant neared winning.
- Prevented payouts through fraudulent tactics.
- Defrauded of approximately Rs 58.42 crore.
The ED’s further investigation detailed the channels used to collect proceeds from these illicit gaming activities. Payments were made either in cash via designated couriers using ‘token’ currency or through bank transfers to specific ‘agent accounts’.
Money Laundering Scheme
- Cash payments via designated couriers.
- Hawala-style ‘token’ currency for identification.
- Bank transfers to specific ‘agent accounts’.
- Utilization of ‘mule’ bank accounts in names of different individuals or entities.
- Funds either withdrawn in cash or remitted outside India as bogus import payments.
Analysis of these mule accounts revealed massive transactions, totaling several crores of rupees, indicative of a sophisticated money laundering operation to conceal and transfer criminal proceeds from the gaming fraud.