ED Seizes ₹8.46 Crore in Major Crypto-Linked Cyber Fraud Probe

The Enforcement Directorate’s Hyderabad zonal office has seized ₹8.46 crore from 92 bank accounts— including those tied to CoinDCX and multiple crypto wallets—while probing a nationwide money laundering racket operating through fake e-commerce platforms and bogus investment apps.

According to the ED, scam proceeds worth ₹285 crore were first routed through 30 short-lived bank accounts that were closed within days. The funds were later layered through more than 80 secondary accounts to avoid detection before being converted into cryptocurrency or channelled via domestic hawala routes.

Investigators found that the fraudsters frequently purchased Tether (USDT) on Binance’s P2P marketplace using third-party payments generated from cybercrime. Sellers on platforms such as WazirX, Buyhatke and CoinDCX allegedly sold USDT to the operators at slightly inflated rates without proper verification. The agency claims the accused converted USDT worth ₹4.81 crore on CoinDCX using non-KYC accounts.

The investigation is based on multiple FIRs filed by Kadapa Police in Andhra Pradesh under IPC Section 420 and IT Act provisions, which were later linked to similar complaints nationwide. The network was reportedly built around fake investment and task-based apps like NBC App, Power Bank App, HPZ Token, RCC App and Making App. Victims were lured through WhatsApp, Telegram and bulk SMS campaigns and were asked to deposit money via UPI to company-linked accounts in exchange for “commissions” and “rewards.”

To gain trust, the operators initially released small profits before blocking withdrawals and demanding additional payments under the guise of taxes or regulatory clearance.

The case comes amid turbulent months for CoinDCX. In July 2025, the exchange suffered a $44 million breach of an internal liquidity wallet, further denting user confidence already shaken by the $230 million WazirX hack last year. CoinDCX has also seen multiple senior-level exits this year across technology, legal, HR and security divisions.

With the ED stepping up action against crypto-linked crimes, the developments have revived concerns over India’s lack of a dedicated crypto law. Despite taxes on gains and TDS on certain transactions, regulatory clarity remains limited.