ED arrests Sagar Dash in APX online betting scam, hundreds of crores routed via mule accounts
Synopsis
The ED's arrest of Sagar Dash in the APX online betting scam lays bare a layered laundering trail — mule accounts, a Hyderabad cooperative bank, Bengaluru's Nagarbhavi Credit Society, and a crypto account opened on fabricated KYC — with hundreds of crores allegedly in play and a second arrest already on record.
Key Takeaways
The ED, Mumbai Zonal Office-II arrested Sagar Dash on 27 October 2026 under the PMLA, 2002 in the All Panel Exchange (APX) online betting scam.
A Special Court in Mumbai remanded Dash to three days of ED custody.
Proceeds were allegedly routed through mule accounts at Jubilee Hills Mercantile Cooperative Bank, Hyderabad and the nodal account of Nagarbhavi Credit Cooperative Society, Bengaluru .
Dash allegedly used fabricated KYC documents of the cooperative society to open a cryptocurrency account .
Earlier searches across six cities led to seizure of documents and freezing of approximately ₹9 crore in bank accounts.
Ramdhani , CEO of Edsom Fintech Pvt.
Ltd. , was also previously arrested in the same case.
The Enforcement Directorate (ED), Mumbai Zonal Office-II, arrested Sagar Dash on 27 October 2026 in connection with an online gaming and betting scam allegedly operated through All Panel Exchange (APX) and linked cyber-fraud activities. A Special Court in Mumbai has remanded Dash to three days of ED custody under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
How the Alleged Fraud Network Operated
According to the ED, the investigation was triggered by three First Information Reports (FIRs) relating to online gaming, betting, and cyber-fraud cases in which complainants were allegedly cheated of crores of rupees. The probe revealed that proceeds of the alleged fraud were routed through multiple mule bank accounts via Jubilee Hills Mercantile Cooperative Bank, Hyderabad, before being transferred to various shell entities.
Subsequent analysis showed that significant sums moved from these shell entities were deposited into the nodal account of Nagarbhavi Credit Cooperative Society, Bengaluru. The ED alleged that Dash used the KYC details and fabricated documents of this cooperative society to open a cryptocurrency account, enabling further laundering of the proceeds.
Scale of Alleged Money Laundering
The agency alleged that Dash routed approximately hundreds of crores of rupees through the cooperative society's bank account, a substantial portion of which was directly linked to proceeds of crime generated through illegal online gaming and betting platforms. The ED stated that unsuspecting victims were targeted through cyber scams as part of the operation.
'Investigation has revealed that Nagarbhavi Credit Cooperative Society's KYC and fabricated documents were used by Sagar Dash to open a crypto account,' the agency said in an official statement.
Earlier Searches and Seizures
Prior to Dash's arrest, the ED had conducted searches at multiple locations across Pune, Mumbai, Bengaluru, Hyderabad, Surat, and Mehsana in Gujarat. Those searches resulted in the seizure of incriminating documents and the freezing of approximately ₹9 crore lying in multiple bank accounts. The agency had also earlier arrested Ram U. Ramdhani, Chief Executive Officer of Edsom Fintech Pvt. Ltd., in connection with the same case.
Broader Crackdown on Illicit Financial Networks
The ED stated it remained committed to tracing and dismantling illicit financial networks and ensuring strict enforcement of the PMLA, 2002. This case is part of a wider regulatory offensive against digital payment ecosystems allegedly exploited for money laundering, particularly through cooperative banks and crypto gateways that offer lower scrutiny than scheduled commercial banks. Further investigation in the matter is underway.
Point of View
Funnel the cleaned money into crypto via fabricated KYC, and rely on institutional blind spots to stay invisible. The involvement of both a Hyderabad cooperative bank and a Bengaluru credit society in a single case points to a cross-state regulatory gap that neither the RBI's cooperative bank oversight nor FIU-India's crypto monitoring appears to have caught in time. The second arrest — of a fintech CEO — signals that the ED is following the money upward in the corporate chain, not just targeting mule-account operators. How far that chain extends will determine whether this becomes a landmark PMLA prosecution or another mid-tier enforcement action.
NationPress
31 Oct 2026
Frequently Asked Questions
Who is Sagar Dash and why was he arrested by the ED?
Sagar Dash was arrested by the Enforcement Directorate on 27 October 2026 in connection with an online gaming and betting scam allegedly operated through All Panel Exchange (APX) and related cyber-fraud activities. He is accused of laundering hundreds of crores of rupees through mule accounts, cooperative banks, and a cryptocurrency account opened using fabricated KYC documents.
What is the All Panel Exchange (APX) scam?
All Panel Exchange (APX) is an online gaming and betting platform at the centre of a money-laundering investigation initiated on the basis of three FIRs involving cyber fraud and illegal betting. Complainants were allegedly cheated of crores of rupees, and the proceeds were routed through a complex chain of mule accounts and shell entities across multiple states.
How was the money allegedly laundered in this case?
According to the ED, fraud proceeds were first moved through mule bank accounts at Jubilee Hills Mercantile Cooperative Bank in Hyderabad, then transferred to shell entities, and subsequently deposited into the nodal account of Nagarbhavi Credit Cooperative Society in Bengaluru. Fabricated KYC documents of the cooperative society were then allegedly used to open a cryptocurrency account for further laundering.
What assets have been seized so far in the APX case?
The ED has seized incriminating documents and frozen approximately ₹9 crore across multiple bank accounts following searches in Pune, Mumbai, Bengaluru, Hyderabad, Surat, and Mehsana in Gujarat. Further investigation is ongoing and additional asset recovery is possible.
Who else has been arrested in this case?
Ahead of Sagar Dash's arrest, the ED had also arrested Ram U. Ramdhani, Chief Executive Officer of Edsom Fintech Pvt. Ltd., in connection with the same online gaming and betting scam. The agency is continuing its investigation into the broader network.
