ED registers PMLA case in Rs 336 crore Crypto fraud
The Enforcement Directorate (ED) on Monday registered a money-laundering case under the Prevention of Money Laundering Act (PMLA) and searched locations linked to an alleged Rs 336 crore cryptocurrency fraud targeting a Dutch national.
The Bengaluru office of the agency carried out raids on July 18 and 19, focusing on over-the-counter (OTC) crypto Tokens involved in the case, including MultiverseX, Kava, BEAM, GRASS, SUI, VANA, and AGLD, among others.
The PMLA case began after the cybercrime police station in South Andaman received a complaint from a Dutch national about large-scale cheating in crypto investments.
The ED said the accused took multi- million-dollar investments from the complainant but stopped delivering the promised tokens when market prices went up.
The ED identified Ravindra K, based in Bengaluru, as the mastermind behind the fraud. The agency now estimates the scam’s value at $35 million (Rs 336 crore), which is much higher than the $10 million reported in the original police FIR. During the raids, the ED seized 87,000 USDT. Investigators also found that the same suspects cheated several other foreign investors, many of whom have not yet filed complaints.
OTC crypto trading involves direct, private deals between parties, often outside regulated exchanges. These deals carry greater risk because they lack transparency and oversight, making them attractive to fraudsters who exploit market changes. The ED’s action under PMLA lets it trace, attach, and possibly confiscate the proceeds of crime.
This case highlights the agency’s increased focus on cryptocurrency-related money laundering, in which digital assets are used to conceal illicit funds. Ravindra K and his associates allegedly gained the complainant’s trust by promising to deliver tokens but failed to do so when prices rose. As a result, the Dutch investor lost a large sum of money, while the accused retained the funds.
Finding more foreign victims during the Bengaluru searches suggests the scam was bigger than first believed. The ED has asked anyone affected to come forward and help with the investigation. Crypto fraud has been rising in India in recent years, with more international investors being targeted by complex digital scams.
This case shows how difficult it is for regulators to monitor cross-border OTC deals in anonymous crypto environments. The ED is still investigating to track the full money trail, identify all beneficiaries, and recover assets. More actions, such as attaching property, are expected as the investigation continues, especially for high-risk crypto investments and OTC trades that promise guaranteed delivery or high returns. Doing due diligence on counterparties and using regulated platforms remain important safeguards. The quick registration of the PMLA case and the raids show the ED’s determination to act firmly against financial crimes involving new digital assets.
