ED has busted a big network by arresting two masterminds of the Digital Arrest scam. Investigation has revealed that they used to extort money through digital fraud and convert cash into cryptocurrency and send it abroad. One of them has been arrested from Kolkata and the other from Delhi.

 

The Enforcement Directorate (ED) on Monday arrested two masterminds of the Digital Arrest scam. One of the accused was arrested from Kolkata and the other from Delhi. According to ED officials, both of them were planning to flee the country. They are accused of managing mule accounts, converting illegal cash into cryptocurrency and sending it abroad.

This case is related to the FIR filed by Chennai Police, in which a senior citizen had complained. He had told that the fraudsters had cheated him of Rs 33 lakh. The victim was threatened with false allegations and 'digital arrest'. At the same time, ED investigation has revealed that the money obtained through fraud was sent at many levels through mule bank accounts.

Network for converting cash into cryptocurrency and sending it abroad

As part of the investigation into the case, the ED had raided more than 30 places in West Bengal, Madhya Pradesh, Uttar Pradesh, Gujarat and Maharashtra. Many mobile phones, laptops and other electronic devices were seized in these raids. Criminal evidence is present in them. Apart from this, cryptocurrencies in the form of Bitcoin (BTC) and USDT have also been seized.

ED investigation has revealed that the accused withdrew cash from mule accounts and converted it into cryptocurrency. Also sent it to entities located abroad. This money came from several digital fraud schemes. Also, the accused misused cash deposit machines (CDM). The accused used cash deposit machines (CDM) to deposit cash in the bank accounts of companies providing fintech services.

Many fintech companies also supported them

Money from the accounts of these companies was transferred to personal accounts, from which the accused received cryptocurrency. This cryptocurrency was allegedly used to hide the proceeds of crime and transfer it abroad. Apart from this, ED found in its investigation that many fintech companies did not follow KYC rules and accepted cash deposits.

 

These cash deposits were found from fake entities and people, whose total amount reaches hundreds of crores of rupees. This money is being considered as suspicious money coming from digital crimes. The role of fintech companies, their distributors, retailers and related bank accounts is being investigated. At the same time, the ED has started further investigation to completely expose this network.