Indian Authority Busts Cryptocurrency Fraud Ring Targeting Foreign National

India’s Enforcement Directorate (ED) has cracked down on a cryptocurrency fraud ring targeting a foreign national. The accused persuaded the victim to transfer $400,000 to a cryptocurrency account set up using unauthorized remote access. The ED seized digital evidence, froze fixed deposits, and confiscated jewelry connected to the case. The investigation is still ongoing.

ED Operation Reveals Extensive Crypto Fraud Network

The Enforcement Directorate (ED) of India announced on Friday that it conducted search operations against Prafful Gupta and associates on June 6 at various locations in Delhi, Haryana, and Kanpur (Uttar Pradesh) in connection with an online fraud targeting a foreign national. The investigation began with a First Information Report (FIR) registered by India’s Central Bureau of Investigation (CBI) against Gupta and other accused persons. The FIR names Prafful Gupta, Sarita Gupta, Kunal Almadi, Gaurav Pahwa, Rishabh Dixit, and unknown others.

The accused convinced the victim to transfer $400,000 to a cryptocurrency account, claiming her bank account was insecure. Unauthorized remote access was used to create a cryptocurrency account in her name. The transferred funds were converted to cryptocurrency and dispersed to various accomplices. The ED detailed:

The caller gained unauthorized remote access to her computer and created a cryptocurrency account in the name of the victim using her mobile number and email ID.

The ED found that the cryptocurrency was transferred to Prafful Gupta and his mother, Sarita Gupta, and subsequently sold. The proceeds were moved to fake entities in India and further distributed to thousands of accounts with fake Know-Your-Customer (KYC) details. Part of the funds went to a Gurgaon-based fintech company, which helped layer the proceeds without proper KYC checks.

According to the ED:

The fake/dummy entities after receiving money from the crypto wallets, further transferred the funds to thousands of accounts with fake KYCs.

The Enforcement Directorate further revealed that search operations led to the seizure of digital evidence, the freezing of Rs. 7.25 crore ($880K) in fixed deposits (FDs), and the seizure of jewelry valued at Rs. 35 lakh ($42K). The investigation is still ongoing.