Chennai: The Enforcement Directorate (ED) has arrested two individuals in connection with an alleged nationwide cyber fraud and money laundering network involving transactions of more than ₹400 crore. The agency suspects that the network used mule bank accounts and cryptocurrency to conceal proceeds generated through online scams.
The ED’s Chennai Zonal Office-II arrested Roshan Fiaz and Ammar on October 30 under the Prevention of Money Laundering Act (PMLA).
The investigation originated from cases registered by Cyberabad cybercrime police and the Tamil Nadu State Cyber Crime Command Centre. During the probe, investigators identified 10 additional FIRs filed in Telangana, Karnataka and West Bengal, along with more than 600 cybercrime complaints allegedly linked to the suspected network.
According to the ED, fraudsters contacted victims through phone calls and social media, offering fake investment opportunities, employment prospects and share market schemes. The victims were allegedly persuaded to transfer money into bank accounts operated by members of the network.
The funds were subsequently routed through several accounts in smaller transactions to make their origins difficult to trace. Investigators allege that mule accounts were used to receive and transfer the proceeds, with some money withdrawn in cash and a substantial portion converted into cryptocurrency, including USDT.
The agency identified 31 bank accounts allegedly controlled by Fiaz, including accounts held in his name, his wife’s name and those of associated firms and entities. Transactions through these accounts reportedly exceeded ₹300 crore.
The ED further alleged that Fiaz managed accounts used to route the suspected fraud proceeds and facilitate cryptocurrency transactions, while Ammar arranged mule accounts and banking kits containing internet banking credentials, SIM cards, mobile phones and email IDs.
Earlier searches under Section 17 of the PMLA led to the seizure of ₹14.5 lakh in cash and cryptocurrency assets valued at approximately ₹3.2 crore. The agency also froze ₹88.2 lakh in bank accounts linked to the investigation.
Both accused were produced before a special PMLA court in Chennai, which remanded them to 14 days of judicial custody. The investigation is continuing to establish the wider network and identify other individuals involved in the alleged financial operations.
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