ED raids 20 locations in online betting fraud case
What's the story
The Enforcement Directorate (ED) has raided 20 locations across Mumbai, Pune, Mehsana, Surat and Hyderabad. The raids are part of a money laundering probe into alleged fraud linked to online betting platforms All Panel Exchange and MGM91. The agency is looking into how money deposited by victims was allegedly funneled through over 200 shell entities and mule bank accounts before being siphoned off through disguised trade payments, cash withdrawals, and cryptocurrency.
Fraud details
Alleged controllers of platforms identified
The investigation has revealed a complex web of money laundering involving over 200 shell entities and mule bank accounts.
The alleged controllers of the platforms and these shell entities have been identified by the ED.
Many people involved in operating these platforms were allegedly controlled from Dubai, further complicating the case.
Account freezes
Three alleged methods of transferring funds out of India
The ED has uncovered three alleged methods of transferring funds out of India.
These include remittances disguised as trade transactions involving over-invoicing, cash withdrawals from mule accounts opened in the names of Agricultural Produce Market Committee (APMC) units, and conversion into cryptocurrency to transfer funds outside India.
During the raids, documents, digital devices, and other material evidence allegedly linked to the movement and diversion of proceeds of crime were seized.
Past actions
Previous raids and arrests
The ED had previously raided several locations in Pune, Mumbai, and Bengaluru in connection with this case.
The agency has also arrested Ram U Ramdhani, the founder of Edsom Fintech Pvt Ltd.
The company is said to have developed an in-house payment intermediary platform called iPaisa and allegedly onboarded over 200 shell or front entities for transactions related to the betting platform operators and their agents.