Hyderabad: The Enforcement Directorate (ED) has launched a sweeping crackdown on a massive crypto cyber fraud network involving money laundering through cryptocurrency and hawala routes. Officials raided 11 locations across Delhi, Noida, Gurugram, and Dehradun, uncovering a scam valued at ₹260 crore.
The fraud involved impersonation and coercion. Offenders posed as police and investigation officers to extort money from citizens. In several cases, they also claimed to be representatives from global tech firms like Microsoft and Amazon, convincing victims to transfer funds under the guise of assistance.
Crypto cyber fraud syndicate used hawala and Tether to move illicit funds abroad
The ED found that the accused converted the proceeds of their scams into cryptocurrency. These funds were distributed across multiple wallets, often stored in Bitcoin and later swapped for stablecoin Tether (USDT). From there, the crypto was routed via hawala operators to cash handlers in the UAE.
CBI and Delhi Police had already registered multiple FIRs related to this network. Preliminary findings suggest that the laundering operation used crypto assets as a shield to bypass financial scrutiny, raising alarms over the abuse of decentralised platforms for transnational fraud.
The ED is continuing its investigation to track the flow of digital assets and dismantle the full extent of the crypto cyber fraud network.