India's Enforcement Directorate (ED) has conducted coordinated raids at 21 locations in Karnataka, Maharashtra, and Delhi as part of an expanded investigation into a large-scale cryptocurrency fraud that has allegedly been ongoing for nearly a decade.

Raids were conducted on December 18 in accordance with the Prevention of Money Laundering Act (PMLA). They targeted residential and office premises associated with 4th Bloc Consultants and their partners.

India's largest cryptocurrency seizure to date?

Authorities report that the group operated fake cryptocurrency investment platforms that defrauded both Indian and foreign investors by promising unusually high returns.

According to ED, the case started with a police report and intelligence from the police in Karnataka.

Investigators claim the defendants created professional websites that resembled genuine global crypto trading platforms, with dashboards, account balances, and transaction histories.

However, these platforms were largely a front. According to authorities, there was little to no real trading activity.

Instead, the crypto scammers recycled the investors' funds in a structure resembling a classic Ponzi or pyramid scheme.

To build credibility, the operators misused photographs of well-known crypto commentators and public figures without consent.

Early investors were paid small profits to build trust. Later, they were encouraged to invest larger amounts and recruit new participants through referral bonuses.

As the scheme grew, the promoters used social media platforms like Facebook, Instagram, WhatsApp, and Telegram to attract victims.

ED believes the network targeted investors in India and abroad.

Investigators say the proceeds were laundered through a complex network of crypto wallets, undeclared foreign bank accounts, shell companies, and hawala channels.

The scammers also moved the funds via peer-to-peer crypto transactions before they were exchanged for cash or deposited into bank accounts.

During the raids, ED identified several crypto wallet addresses allegedly controlled by the defendants, as well as movable and immovable assets purchased in India and abroad with illegal funds.

Authorities also uncovered several foreign companies used to conceal the flow of money.

It is noted that authorities believe the operation can be traced back to at least 2015. The scammers have developed their methods over time to avoid detection as crypto markets became more monitored.

The investigation is still ongoing.