India’s ED Expands Crackdown on Crypto Fraud Involving Fake Investment Platforms

India's Enforcement Directorate (ED) has intensified its scrutiny of cryptocurrency-related financial crimes, conducting coordinated raids across Karnataka, Maharashtra, and New Delhi. The operation targets a network of fraudulent crypto investment platforms that mimicked legitimate trading sites, promising unrealistic returns to both domestic and international investors.

Authorities executed searches at 21 locations under the Prevention of Money Laundering Act (PMLA), focusing on 4th Bloc Consultants and associated individuals. The scheme allegedly used unauthorized endorsements from prominent figures to lure victims into what investigators describe as a multi-year, organized fraud operation.

The case originated from an FIR filed by Karnataka police, revealing sophisticated deception tactics including cloned wallet interfaces and fabricated performance metrics. Early investors reportedly received payouts to establish credibility before the operators disappeared with subsequent deposits.