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Indian authorities bust multi-state crypto scam running for 10 years

Written by Brie CarterPublished Dec. 25 2025Last Updated Dec. 25 2025

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India’s Enforcement Directorate has conducted coordinated raids at 21 locations across Karnataka, Maharashtra and Delhi in connection with a long-running crypto investment scam.

The searches were carried out on Dec. 18 under the Prevention of Money Laundering Act as part of an expanding probe.

Officials said the operation targeted residential and office premises linked to 4th Bloc Consultants and associated entities.

Investigators allege the scam operated for nearly a decade and defrauded both Indian and foreign investors.

The case originated from a police FIR supported by intelligence inputs from the Karnataka State Police.

Authorities said the accused promoted fake crypto investment platforms promising unusually high and consistent returns.

The platforms were designed to closely resemble legitimate global crypto trading websites.

Investigators said the sites featured dashboards, account balances and transaction histories to create credibility.

Officials believe there was little or no real trading activity behind the interfaces.

Instead, investor funds were allegedly recycled in a structure resembling a Ponzi or multi-level marketing scheme.

Early participants reportedly received small payouts to build trust in the operation.

Victims were later encouraged to invest larger sums and recruit others through referral incentives.

The scheme relied heavily on social media to attract new investors.

Platforms used allegedly included Facebook, Instagram, WhatsApp and Telegram.

Investigators said the promoters misused photographs of well-known crypto commentators and public figures without consent.

Authorities believe the network deliberately targeted overseas investors alongside victims in India.

The ED said proceeds of crime were laundered through a complex web of crypto wallets and foreign bank accounts.

Funds were also routed through shell companies and hawala channels to obscure their origin.

Investigators said peer-to-peer crypto transfers were used before assets were converted into cash.

Some proceeds were allegedly parked in bank accounts in India and abroad.

During the raids, officials identified multiple crypto wallet addresses linked to the accused.

The ED also traced movable and immovable assets allegedly acquired using illicit funds.

Several foreign entities were flagged as part of efforts to conceal the money trail.

Authorities believe the operation dates back to at least 2015.

Investigators said the scheme evolved over time to evade detection.

Promoters are accused of adapting tactics as regulatory scrutiny of crypto markets increased.

Officials described the case as one of the most complex crypto fraud investigations in recent years.

The ED said asset tracing efforts are continuing across jurisdictions.

Law enforcement agencies are coordinating to identify additional victims.

Authorities warned investors to remain cautious of platforms promising guaranteed or unusually high returns.

The investigation remains ongoing and further action has not been ruled out.