The Directorate of Enforcement (ED) has frozen 129 bank accounts holding balances of ₹18.4 crore and conducted searches at eight locations across Mumbai, Thane, Bengaluru, and Gurugram as part of a large-scale online investment fraud and money laundering investigation, according to an official statement released on Monday, 15 June. The action marks a significant escalation in the probe into fraudulent schemes that allegedly duped numerous investors across India.

Search Operations and Entities Targeted

The raids were executed by the ED's Kolkata zonal office on 1 June and 4 June under the provisions of the Prevention of Money Laundering Act (PMLA). Several companies were targeted, including Payx Digital Payment Pvt. Ltd., Smoothpe Digital Pvt. Ltd., Kinsen Business Solution Pvt. Ltd., Safexpay Technologies Pvt. Ltd. (now operating as Touras Tech Global Pvt. Ltd.), Gyan Kuber Ltd., and Decentro Tech Pvt. Ltd.

Investigators seized various incriminating documents and digital devices during the searches, which are currently under detailed examination. Beyond freezing the bank accounts under Section 17(1A) of the PMLA, the agency has also frozen several lockers linked to the case.

How the Fraud Allegedly Operated

The money laundering probe originates from multiple FIRs registered by the Cyber Crime Police Station under the Bidhannagar Police Commissionerate in West Bengal, relating to fraudulent online investment schemes. According to investigators, victims were lured through social media platforms and WhatsApp groups bearing names such as 'Stock Frontline C4' and 'Vanguard C7'.

Fraudsters allegedly persuaded individuals to invest through mobile applications — CHCSES, ALICE, and ESCORTS — with promises of substantial returns from stock market and IPO investments. The apps reportedly displayed inflated profits after investors deposited funds, creating a false impression of successful trades. When investors attempted to withdraw their money, they were allegedly asked to make additional payments under various pretexts, including taxes and processing charges, before ultimately losing significant sums.

The Money Trail: Mule Accounts and Layering

The ED's investigation has revealed that proceeds from the cyber fraud were allegedly routed through a complex network of mule accounts, charitable trust accounts, and payment gateway companies in an attempt to obscure the origin of funds. The transaction trail indicates receipt of funds from suspected mule accounts, followed by multiple layers of transfers across interconnected entities before being channelled through payment gateways.

Notably, investigators have also uncovered common directors, shared business premises, financial linkages, and significant fund transfers among several of the entities under scrutiny — pointing to possible coordination in the movement and layering of illicit funds. This pattern of interlocking corporate structures is consistent with organised financial crime, where shell-like entities serve as conduits rather than legitimate businesses.

Investigation Ongoing

The ED has stated that further investigation is underway to identify the ultimate beneficiaries, trace the complete money trail, and determine the full extent of the alleged fraud and money laundering network. As enforcement agencies sharpen their focus on cyber-enabled financial crimes, this case underscores the growing sophistication of online investment scams targeting retail investors through social media and app-based platforms.