India’s financial crime watchdog, the Enforcement Directorate (ED), is widening its crackdown on crypto-related fraud. In a recent coordinated move, the ED carried out searches across three states linked to a case involving fake investment platforms that allegedly duped investors both in India and overseas.

### Nationwide Raids Across Three States

The Enforcement Directorate reportedly raided 21 residential and office locations across Karnataka, Maharashtra, and New Delhi. These searches were part of a money laundering investigation conducted under the Prevention of Money Laundering Act (PMLA). The case has been registered against 4th Bloc Consultants and several other individuals.

### ED Discovers Web of Crypto Wallets

According to the ED, the probe originated from an FIR and intelligence inputs shared by the Karnataka state police. Authorities describe this as an organized and multi-year financial fraud operation.

The accused allegedly operated a network of fake crypto investment platforms that closely resembled legitimate trading websites. These platforms promised unusually high returns and targeted both Indian residents and foreign nationals. The scammers lured victims by claiming quick and regular profits through digital assets.

Investigators found that the operators used photographs of well-known personalities and so-called crypto experts without their permission to create a false sense of credibility. Early investors were paid small returns to build trust before being asked to invest larger sums. Such tactics resemble classic multi-level marketing and pig-butchering scams.

### Use of Social Media and Referral Bonuses

The ED highlighted that the group heavily relied on social media platforms, including Facebook, Instagram, WhatsApp, and Telegram, to promote their fraudulent schemes. They also offered referral bonuses to expand their investor base.

However, the operation took a darker turn as funds were allegedly routed through a complex web of crypto wallets, shell companies, and foreign bank accounts to obscure the money trail.

### Crypto Scams Traced Back to 2015

Officials noted that the proceeds of the crime were moved using peer-to-peer (P2P) crypto transfers. The scammers also utilized hawala channels before converting the funds into cash or depositing them into bank accounts. Some of the illicit funds were used directly for additional crypto transactions.

Authorities traced both movable and immovable assets in India and abroad, which were allegedly acquired using the fraudulently obtained money. The ED stated that the syndicate had been operating since at least 2015.

### No Arrests Yet; Public Advisory Issued

As of now, no arrests have been announced. However, the ED has issued a public advisory warning investors against engaging with several websites suspected to be part of the scam network. Some of these sites include:

– goldbooker.com
– cryptobrite.com
– hawkchain.com
– cubigains.com
– bitminerclub.com

Investors are urged to immediately cease any related activities involving these platforms.

### Current Crypto Market Context

It is important to note that digital assets are not recognized as legal tender in India. Globally, the cryptocurrency market is facing high selling pressure. The cumulative crypto market capitalization currently remains below the $3 trillion mark, with Bitcoin’s price stuck under $88,000. Year-to-date (YTD), Bitcoin (BTC) is down by approximately 7%.

—

**Disclaimer:** Always exercise caution and conduct thorough research before investing in digital assets. Stay updated with official advisories from financial authorities.

—

*Get up to $30,050 in trading rewards when you join Bybit today.*
https://bitcoinethereumnews.com/crypto/indias-ed-uncovers-fake-crypto-sites-in-money-laundering-probe/