The Enforcement Directorate (ED) on Saturday, 25 July conducted search operations across multiple premises in Mumbai, Pune, and Bengaluru as part of a money laundering investigation linked to the online gaming and betting platform 'All Panel Exchange'. Incriminating documents and digital devices were seized, and several bank accounts connected to the operation were frozen, according to an official statement.

How the Fraud Operated

The investigation traces back to a complaint filed with Jalgaon Police, in which a victim was lured into the 'All Panel Exchange' platform via a WhatsApp message. According to the ED, the operators initially permitted small withdrawals to build trust before inducing the complainant to invest larger sums. When the victim subsequently requested withdrawals, the requests were denied and the operators became unresponsive — a classic confidence-fraud pattern seen in multiple cyber-scam cases across India.

The Money Trail: Edsom Fintech at the Centre

The ED's Mumbai Zonal Office, acting under the Prevention of Money Laundering Act (PMLA), 2002, found that funds collected from victims were routed into accounts maintained by Edsom Fintech Private Limited, a Pune-based entity. According to the agency, this firm received hundreds of crores through mule accounts and layering entities. Its accounts were found linked to a wide range of cybercrime complaints filed by victims across the country, spanning online gaming fraud, investment fraud, share trading fraud, crypto fraud, and online task-based frauds. A separate FIR was also registered against Edsom Fintech by Bengaluru Police for an online gaming fraud in which a complainant was allegedly cheated of ₹5.3 crore.

Shell Companies, Crypto, and Offshore Transfers

Investigators found that proceeds of crime were systematically layered through a web of shell and associate entities before being converted into virtual digital assets via crypto platforms and moved to offshore entities. The ED noted that many of the layering entities were dummy companies with no actual business operations, registered at addresses where they did not physically exist, and managed by fictitious directors. Notably, a Credit Cooperative Society's KYC documents and fabricated records were allegedly used to open a crypto exchange wallet, through which an individual reportedly routed ₹800 crore — a substantial portion of which the agency says is directly linked to proceeds from illegal gaming and betting scams.

Scale and Significance

The breadth of the alleged network — spanning multiple cities, dozens of mule accounts, crypto conversions, and offshore transfers — places this among the larger PMLA actions targeting online fraud ecosystems in recent months. This comes amid a broader regulatory push by Indian authorities to crack down on illegal offshore betting platforms and the fintech intermediaries that allegedly facilitate money laundering on their behalf. The ED's action follows a pattern of similar raids on cyber-fraud-linked fintech entities over the past year.

What Happens Next

With bank accounts frozen and digital evidence seized, the ED is expected to issue summons and may move toward attachment of properties under the PMLA. The investigation remains ongoing, and further arrests or asset seizures have not been ruled out, according to officials familiar with the matter.