India Cracks Down: Enforcement Directorate Exposes $29M Crypto Scam in Multi-City Raids

Blockchain meets handcuffs—India’s financial cops just stormed multiple cities to dismantle a $29M crypto fraud operation. Here’s the fallout.

Subheader: The Raids Unfold

No fancy DeFi jargon here—just old-fashioned law enforcement kicking doors. The Enforcement Directorate (ED) targeted key players in a scheme that duped investors with promises of ‘guaranteed’ crypto returns. Classic.

Subheader: The $29M Illusion

Forget moon shots—this crew allegedly built a Ponzi rocket ship. Victims were lured into fake investment platforms, because nothing screams ‘legit’ like Telegram groups and anonymous founders.

Subheader: Regulatory Reckoning?

While the ED flexes its muscles, cynics whisper: ‘Another day, another crypto scam.’ But hey—at least this one didn’t involve a celebrity endorsement.

Closer: Another reminder that in crypto, if it sounds too good to be true… it’s probably a federal case waiting to happen.

Fraudsters Accrued $29M in Bitcoin Across Multiple Crypto Wallets: ED

Sources note that perpetrators also duped victims by posing as Microsoft, Amazon tech support service agents.

The accused allegedly generated nearly $29 million in Bitcoin from illicit gains. The cryptos were further liquidated into cash through USDT conversion via multiple hawala operators in the UAE, the agency sources added.

The agency carried out raids under the Prevention of Money Laundering Act (PMLA) on Wednesday.

The raid arrives a day after the ED initiated an investigation in a $4.7 million crypto fraud case, where the accused spoofed the website of crypto exchange Coinbase. An Indian national was arrested in the US in connection with the fraud case.

ED, Headquarters Office, New Delhi has provisionally attached assets include 18 immovable properties in Delhi and credits in bank accounts on 02.08.2025 valued at Rs. 42.8 Crore belonging to Chirag Tomar, his family members, and associated entities in the cyber fraud case…

In March, the ED chose CoinDCX to oversee the management of seized digital assets, as part of a crackdown on cryptocurrency-related financial crimes.

Crypto Adoption Rise in India Forces Regulatory Bodies to Focus on Stronger Enforcement

Indian authorities have recently intensified enforcement against crypto fraud, following high-profile cases like BitConnect and GainBitcoin that question investor protection.

The ED seized digital assets worth approximately $198 million linked to the BitConnect scam, which defrauded investors worldwide.

Earlier, the CBI had seized $2.88 million in the GainBitcoin scam, uncovering evidence of financial misappropriation. Such recent actions demonstrate the increasing efforts by authorities to tackle large-scale crypto-related fraud.