A major cryptocurrency investment scam has been uncovered by the Enforcement Directorate, triggering simultaneous searches at 21 premises across Karnataka, Maharashtra, and Delhi on December 18, 2025. The investigation targets M/s 4th Bloc Consultants and associated individuals under the Prevention of Money Laundering Act, 2002. The ED launched the operation following an FIR by state police and intelligence inputs suggesting a large-scale, organised crypto fraud affecting both Indian citizens and foreign investors.
Preliminary findings show that the accused created fake cryptocurrency investment platforms designed to mimic reputable international websites. These platforms promised unrealistic returns to lure investors, with interfaces, dashboards, and transaction mechanisms crafted to appear legitimate. The network used aggressive digital marketing and social media campaigns to attract participants, and even misused photos and names of well-known crypto experts to gain trust. Early investors received partial returns to encourage larger investments and recruit new members, replicating a Multi-Level Marketing model. Referral bonuses and social media promotions on Facebook, Instagram, WhatsApp, and Telegram were extensively used to expand the network quickly.
Investigators discovered that the accused maintained multiple cryptocurrency wallets, undisclosed foreign bank accounts, and shell companies to collect and conceal proceeds of crime. Illicit funds were moved into India through hawala channels, accommodation entries, and peer-to-peer crypto transfers. Over time, cryptocurrencies were converted into cash, bank balances, and assets, with some properties already identified during the searches. The fraud has reportedly been active since 2015, with evidence of both domestic and international financial transactions and asset acquisitions.
The ED has identified numerous fraudulent websites, including goldbooker.com, fincorp.com, wozur.com, mygoldrev.com, cryptexify.com, hawkchain.com, paymara.com, hackandpool.com, growmore.com, bitrobix.com, primetrades.com, zylotrade.com, cryptogames24hrs.com, theapexpower.com, cryptobrite.com, goldxcapital.com, cubigains.com, bitcodeals.com, turbominers.com, bitminerclub.com, cryptobtctrade.com, hydrominers.com, bitleeds.com, jumboticket.network, bixotrade.org, and metaaibox.com. The ED is coordinating with international agencies and crypto platforms to trace the entire network, with further searches, property attachments, and arrests expected. Experts warn investors to verify platform legitimacy, compliance, and risks before investing in digital assets.
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