Key Highlights
- The ED arrested Roshan Fiaz and Ammar on October 30 under the Prevention of Money Laundering Act.
- The agency linked the alleged network to more than 600 cybercrime complaints and 12 FIRs across several states.
- The ED alleges that more than ₹400 crore in proceeds from online fraud was diverted through mule bank accounts and cryptocurrency transfers.
India’s Enforcement Directorate (ED) has arrested two individuals in connection with an alleged money-laundering network linked to hundreds of online fraud cases.
The agency’s Chennai Zonal Office-II arrested Roshan Fiaz and Ammar on October 30 under the Prevention of Money Laundering Act (PMLA), 2002. According to an ED release dated November 5, the investigation concerns more than ₹400 crore in suspected proceeds from cybercrime and online fraud.
The ED alleges that the accused used bank accounts held by different individuals and entities to route the funds, with part of the money later converted into USDT.
ED links network to more than 600 cybercrime complaints
The investigation stems from two FIRs registered by cybercrime authorities in Tamil Nadu and Telangana. One case was registered by the State Cyber Crime Command Centre of Tamil Nadu Police, while the other was filed by the Cyber Crime Police Station in Cyberabad, Telangana.
During the investigation, the ED identified 10 additional FIRs from Telangana, Karnataka and West Bengal that it said were connected to the same network. The agency said more than 600 cybercrime complaints had surfaced in connection with the alleged operation.
According to the ED, fraudsters contacted victims through phone calls and social media platforms, offering investment schemes, job opportunities and share market investments. Victims were persuaded to transfer money into bank accounts provided by members of the network.
The money was then split into smaller transfers through multiple mule accounts. A portion was allegedly withdrawn in cash, while another portion was converted into cryptocurrency and moved through crypto wallets.
ED details alleged roles of the two accused
The ED described Roshan Fiaz as a key figure in the alleged network. Investigators said he managed multiple mule bank accounts held in his own name, his wife’s name, and the names of proprietorships and other entities under his control.
The ED identified debit and credit transactions exceeding ₹300 crore across 31 such accounts. According to the investigation, funds collected from victims were routed through these accounts before being converted into USDT.
Ammar allegedly provided Fiaz with bank accounts held by different individuals and entities. The ED said he supplied account kits, internet banking credentials, SIM cards, mobile phones and email IDs to facilitate the receipt of Indian rupee payments from cryptocurrency buyers.
ED seizes crypto worth ₹3.26 crore
The ED had earlier searched premises linked to the accused and their associated entities under Section 17 of the PMLA. The agency seized ₹14.50 lakh in cash and cryptocurrency worth ₹3.26 crore. It also froze approximately ₹88.28 lakh held in multiple bank accounts.
The two accused were produced before the Special Court under the PMLA in Chennai, which granted 14 days of judicial custody, according to the ED.
Other crypto-linked fraud cases in India
On October 28, The Crypto Times reported that Delhi Police had arrested seven people in a suspected cyber fraud case involving ₹3.93 crore. Investigators traced the funds through mule bank accounts and cash withdrawals before identifying a suspected hawala-linked USDT conversion channel. Police were examining possible cross-border links.
In September, the ED arrested two people in an alleged ₹40 crore Hashpe crypto fraud case and searched 11 premises. The agency said the scheme had been promoted through social media campaigns and events featuring Bollywood celebrities.
Hyderabad Police separately arrested five people in October over an alleged robbery involving a proposed USDT transaction. According to The Crypto Times’ October 18 report, the group allegedly targeted buyers carrying cash for a cryptocurrency conversion deal. Police recovered ₹11.5 lakh and three mobile phones following the October 11 incident.
These cases involve separate investigations and do not establish a connection to the network under investigation by the Chennai ED office.
The ED said its investigation is continuing.