A nationwide investigation into suspected online fraud and financial transactions has led to the arrest of 2 individuals in an alleged money laundering network involving more than ₹400 crore.
The Enforcement Directorate’s (ED) Chennai Zonal Office-II arrested Roshan Fiaz and Ammar on October 30 under the Prevention of Money Laundering Act (PMLA). The probe began after cases were registered by Cyberabad cybercrime police and the Tamil Nadu State Cyber Crime Command Centre.
Investigation uncovers multiple cases
During the investigation, the ED identified 10 additional FIRs registered in Telangana, Karnataka and West Bengal. More than 600 cybercrime complaints were also traced to the suspected financial network.
According to investigators, fraudsters contacted victims through phone calls and social media, offering fake investment opportunities, jobs and share market schemes. Victims were allegedly persuaded to transfer money into bank accounts controlled by the network.
The funds were then moved through multiple accounts in smaller transactions to make them harder to trace.
Mule accounts and cryptocurrency used to move funds
The ED alleged that the accused used mule bank accounts to collect and transfer fraud proceeds. Some of the money was withdrawn in cash, while a significant portion was converted into cryptocurrency, including USDT, to hide its origin.
Investigators identified 31 bank accounts allegedly controlled by Fiaz. These accounts were held in his name, his wife’s name and the names of associated firms and entities. Transactions through them exceeded ₹300 crore, according to the agency.
The ED alleged that Fiaz managed accounts used to route fraud proceeds and support cryptocurrency transactions. Ammar allegedly arranged mule accounts and banking kits containing internet banking credentials, SIM cards, mobile phones and email IDs.
ED seizes cash and digital assets
Earlier searches under Section 17 of the PMLA led to the seizure of ₹14.5 lakh in cash and cryptocurrency assets worth approximately ₹3.2 crore. The agency also froze ₹88.2 lakh in bank accounts linked to the investigation.
Both accused were produced before a special PMLA court in Chennai, which remanded them to 14 days of judicial custody. The investigation is examining suspected links between online investment fraud, mule banking networks and cryptocurrency-based money laundering across multiple states.
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