India’s Enforcement Directorate has opened a money laundering investigation into an alleged $35 million cryptocurrency scam linked to Bengaluru-based operators. The case began after a Dutch entity reported losses tied to promises of discounted crypto tokens that the suspects allegedly failed to deliver.
The ED said the suspects used private Telegram groups, personal meetings, and false credentials to build trust. They allegedly completed small over-the-counter crypto trades before asking the complainant to invest much larger sums.
Small Crypto Trades Built Investor Trust
The case stems from an FIR that the Cyber Crime Police Station in South Andaman registered. The complaint initially placed the alleged loss at about $10 million. Investigators later raised the estimated amount to nearly $35 million after reviewing wallets, emails, devices, and transaction records.
According to the ED, Mohammed Waseem, Saurabh Diwan, and Vaibhav Gupta presented themselves as crypto market insiders. They claimed they could secure discounted token allocations through direct links with blockchain developers and major crypto projects.
The agency said the accused first handled smaller OTC transactions without problems. This helped them gain the complainant’s confidence and encouraged larger transfers. The promised tokens included MultiverseX, Kava, BEAM, GRASS, SUI, VANA, and AGLD.
The ED said the group later stopped delivering the agreed tokens after receiving multi-million-dollar investments. Investigators allege that the accused withheld the distributions as token prices moved higher. The complainant then reported the matter to police.
Telegram Groups Promoted Discounted Tokens
Investigators described the accused as self-styled “key opinion leaders” in the cryptocurrency industry. They allegedly promoted private token sales through Telegram, WhatsApp, Instagram, and websites. Their messages claimed “guaranteed” access to early token placements at reduced prices.
The ED said these claims helped attract investors seeking cheaper entry prices and high returns. The group collected funds through crypto wallets. Investigators allege that several investors either did not receive the promised token allotments or failed to receive the expected payouts.
The agency said the funds eventually reached Ravindra K, a Bengaluru resident whom investigators described as the alleged mastermind behind the OTC operation. Authorities are examining his role in receiving, transferring, and directing the crypto funds.
Moreover, the ED said other foreign entities and investors may have suffered similar losses. Some have not filed criminal complaints. This evidence led investigators to revise the suspected value of the scheme from about $10 million to around $35 million.
ED Seizes Wallets and 8,700 USDT
The ED searched several locations on July 18 and July 19 under the Prevention of Money Laundering Act. Officers seized digital devices, emails, and crypto wallets that they believe helped the suspects move funds linked to the alleged fraud.
Authorities also seized virtual digital assets worth about 8,700 USDT. Tether issues USDT as a stablecoin designed to track the value of the US dollar. Investigators are reviewing wallet activity and digital records to trace the wider movement of funds.
The ED said the accused spent the alleged proceeds on movable and immovable property, personal expenses, and business ventures. The agency has not disclosed the identity of the Dutch entity that filed the complaint.
Meanwhile, the investigation continues. The ED is examining additional wallet transfers, investor records, and possible links to other foreign complainants connected to the Bengaluru crypto scam.
Disclaimer : Crypto News India does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
