Hyderabad: A Cyberabad cybercrime case has emerged as a key link in an Enforcement Directorate (ED) investigation into an alleged pan-India money laundering network that routed more than Rs 400 crore in proceeds from online frauds through mule bank accounts and cryptocurrency channels.
As part of the probe, the ED’s Chennai zonal office-II arrested Roshan Fiaz and Ammar on Oct 30 under the Prevention of Money Laundering Act. The ED probe is based on two predicate offences, including a Cyberabad cybercrime FIR and another case registered by the Tamil Nadu police’s State Cyber Crime Command Centre. The cases were booked under provisions of the Bharatiya Nyaya Sanhita and the Information Technology Act.
During the investigation, the ED identified 10 more FIRs registered in Telangana, Karnataka and West Bengal, besides tracing over 600 cybercrime complaints allegedly linked to the network. Debit and credit transactions in 31 such accounts exceeded Rs 300 crore, according to the agency. Cash, crypto seized Earlier searches conducted under Section 17 of the PMLA at locations linked to the accused and associated entities resulted in the seizure of Rs 14.5 lakh in cash and cryptocurrency assets worth Rs 3.2 crore. The ED also froze Rs 88.2 lakh held in bank accounts. Both accused were produced before the special PMLA court in Chennai, which remanded them to 14 days of judicial custody.
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Funds routed thru mule accounts According to the ED, the fraudsters targeted victims through phone calls and social media platforms, luring them with fake investment opportunities, job offers and share market schemes. Investigators alleged that the money collected from victims was first routed through mule bank accounts, broken into smaller transactions across multiple accounts and then partly withdrawn as cash. A significant portion was subsequently converted into cryptocurrency and transferred through digital wallets to conceal its origin. The ED alleged that Fiaz and Ammar, along with their associates, played a key role in designing and operating the layering mechanism used to divert and disguise proceeds generated from hundreds of cyber frauds. Fiaz is alleged to have controlled several bank accounts in his own name, his wife’s name and those of proprietorship firms and other entities. Victims’ funds were allegedly routed through these accounts before being converted into USDT cryptocurrency. Ammar allegedly supplied mule accounts and account kits to Fiaz, including internet banking credentials, SIM cards, mobile phones and email IDs used to facilitate transactions linked to cryptocurrency trading. Download the TOI App.