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The Enforcement Directorate (ED) has arrested two individuals in connection with an alleged nationwide cyber fraud and money laundering network involving more than ₹400 crore.
The investigation, which originated from a Cyberabad cybercrime case, has uncovered a suspected network that transferred money obtained through online fraud using mule bank accounts and cryptocurrency transactions.
The ED’s Chennai Zonal Office-II arrested Roshan Fiaz and Ammar on October 30 under the Prevention of Money Laundering Act (PMLA).
How Did the Investigation Begin?
The investigation began with two criminal cases registered by Cyberabad cybercrime police and the Tamil Nadu State Cyber Crime Command Centre.
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During the probe, investigators identified 10 additional FIRs registered in Telangana, Karnataka and West Bengal.
The ED also traced more than 600 cybercrime complaints allegedly connected to the suspected financial network.
How Were Victims Cheated?
According to investigators, fraudsters approached victims through telephone calls and social media platforms, offering fake investment opportunities, jobs and share market schemes. Victims were allegedly persuaded to transfer money into bank accounts controlled by the network.
The collected funds were then distributed across multiple accounts through smaller transactions, making the money trail difficult to follow.
How Was the Money Laundered?
The ED alleged that the accused used mule bank accounts to receive and move fraud proceeds.
Some funds were withdrawn as cash, while a significant portion was converted into cryptocurrency, including USDT, to conceal their origins.
Investigators identified 31 bank accounts allegedly controlled by Fiaz in his name, his wife’s name and those of associated firms and entities. Debit and credit transactions through these accounts exceeded ₹300 crore, according to the agency.
What Roles Did the Accused Play?
Investigators alleged that Fiaz controlled accounts used to route fraud proceeds and facilitate cryptocurrency transactions.
Ammar allegedly supplied mule accounts and banking kits containing internet banking credentials, SIM cards, mobile phones and email IDs.
The ED suspects that both accused, along with their associates, helped operate a financial network designed to conceal money collected through cyber fraud.
What Did the ED Seize?
Earlier searches conducted under Section 17 of the PMLA resulted in the seizure of ₹14.5 lakh in cash and cryptocurrency assets worth approximately ₹3.2 crore. Investigators also froze ₹88.2 lakh held 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 has exposed suspected links between online investment fraud, mule banking networks and cryptocurrency-based money laundering across multiple states.
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