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The post India’s ED uncovers fake crypto sites in money laundering probe appeared com. India’s financial crime watchdog is widening its crackdown on crypto-related fraud. In the fresh move, ED carried out coordinated searches across three states. These raids were linked to a case involving fake investment platforms that allegedly duped investors in India and overseas. The Enforcement Directorate reportedly raided 21 residential and office locations across Karnataka, Maharashtra and New Delhi. This was part of a money laundering investigation. The searches were conducted under the Prevention of Money Laundering Act (PMLA). The case was registered against 4th Bloc Consultants and several other individuals. ED finds web of crypto wallets According to the ED, the probe comes out of an FIR and intelligence inputs shared by the Karnataka state police. The authorities have described it as an organised and multi-year financial fraud operation. The accused allegedly ran a network of fake crypto investment platforms that closely looked like actual trading websites. The platforms under investigation used to promise unusually high returns. However, they targeted both Indian residents and foreign nationals. The scammers lure them with claims of quick and regular profits through digital assets. Investigators highlighted that the operators used photographs of well-known personalities and so-called crypto experts without permission to build credibility. The report added that several early investors were paid small returns to establish trust before larger sums were asked for. These tactics mirror classic multi-level marketing and pig-butchering scams. The ED said the group relied heavily on social media platforms to promote the schemes. This includes Facebook, Instagram, WhatsApp and Telegram. However, referral bonuses were offered to expand the investor base. This takes a dark turn as funds were allegedly routed through a web of crypto wallets, shell companies and foreign bank accounts. Crypto scams traced back to 2015 Officials have marked that the proceeds of crime were moved using peer-to-peer.