ED raids 21 locations simultaneously in Karnataka, Maharashtra and Delhi, uncovering major fraud in the name of crypto investment

News Topical, Digital Desk : A major gang that defrauded people from India and abroad of crores of rupees by promising them huge profits by investing in cryptocurrency has been exposed. On December 18, 2025, the Bengaluru Zonal Office of the Enforcement Directorate (ED) conducted simultaneous raids at 21 locations in Karnataka, Maharashtra, and Delhi under the Prevention of Money Laundering Act (PMLA). This action was taken against M/s 4th Bloc Consultants and its associates.

Fake cryptocurrency investment platform created

The ED received this information based on a Karnataka police FIR and shared inputs. Initial investigations revealed that the accused were defrauding people by creating fake cryptocurrency investment platforms. These websites were disguised as genuine investment platforms and offered the lure of extremely high returns.

How was the fraud carried out?

The investigation revealed the accused's tactics resembled a multi-level marketing (MLM) scheme. Initially, trust was gained by returning money to a few investors, encouraging them to recruit more. This was followed by large-scale investments. The accused made extensive use of social media, placing advertisements on platforms like Facebook, Instagram, WhatsApp, and Telegram to lure people. Furthermore, photos of renowned crypto experts and celebrities were used in the campaign without permission.

From crypto wallets to hawala

The ED investigation revealed that the accused had established numerous fake crypto wallets, foreign bank accounts, and shell companies. The proceeds of the fraud were collected in the form of cryptocurrency. The money was then laundered within India and abroad through hawala, fraudulent entries, and peer-to-peer (P2P) crypto transactions. This entire scheme is reported to have been in operation since 2015. The ill-gotten gains were also used to purchase movable and immovable properties in India and abroad.

What was found in the raid?

During the raids, the ED discovered numerous properties belonging to the accused. Furthermore, it uncovered crypto wallet addresses used to store and further utilize the proceeds of crime. The investigation also revealed that several of the accused operated secret bank accounts and companies abroad to launder their money.

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