Two masterminds of digital arrest scam nabbed: ED
Both suspects played a key role in managing mule accounts, converting illicit cash into cryptocurrency, and transferring it overseas, it central probe agency said
2 min read
The case stems from an FIR earlier filed by a senior citizen with the Chennai Police, alleging that scamsters defrauded her of Rs 33 lakhFollowing raids at over 30 locations, including Gujarat, the Chennai Zonal Office of the Enforcement Directorate (ED) on Monday said it has arrested two masterminds in connection with an alleged countrywide digital arrest scam. While one suspect was apprehended in Kolkata, the second was arrested in Delhi while he was attempting to flee the country, the Central agency added.
Both suspects played a key role in managing mule accounts, converting illicit cash into cryptocurrency, and transferring it overseas, it said.
In its statement Monday, the ED said it had previously conducted raids at over 30 locations across West Bengal, Madhya Pradesh, Uttar Pradesh, Gujarat, and Maharashtra. During the searches, multiple mobile phones, laptops, and other electronic devices containing substantial incriminating evidence were seized. Cryptocurrency in the form of BTC (Bitcoin) and USDT (Tether, a form of cryptocurrency) was also found and seized.
The case stems from an FIR earlier filed by a senior citizen with the Chennai Police, alleging that scamsters defrauded her of Rs 33 lakh. The victim was allegedly threatened with fake allegations and the prospect of a “digital arrest”. ED investigation uncovered a network of layered mule bank accounts used to route fraudulent funds, the agency said. ED investigation revealed a sophisticated system wherein cash withdrawn from mule accounts was converted into cryptocurrency and transferred to entities suspected to be based abroad. Significant amounts of funds, originating from various digital fraud schemes, were routed through this method.
Additionally, the accused misused Cash Deposit Machines (CDMs) to deposit cash into the bank accounts of companies offering fintech services. These funds were then routed to individual accounts, enabling the accused to obtain cryptocurrency, the ED said. This cryptocurrency was allegedly used to conceal and transfer the Proceeds of Crime abroad with the assistance of accomplices using foreign phone numbers, it added.
ED also uncovered major lapses by several fintech companies, which failed to comply with Know Your Customer (KYC) norms and accepted cash deposits from bogus entities and individuals, the agency said.
You May Like
Photos
