India's ED Raids 11 Sites in $29M Crypto Fraud Probe

The Indian Enforcement Directorate (ED) conducted raids across multiple cities, including Delhi, as part of an investigation into a $29 million cryptocurrency fraud case. The operation, carried out on August 5, 2025, targeted 11 locations linked to a fraudulent network that used deceptive tactics to extort money from both Indian and foreign nationals. According to investigators, fraudsters impersonated police officers, investigating agency representatives, and even tech support agents from companies like Microsoft and Amazon. The criminals used these tactics to coerce victims into transferring funds, often threatening legal consequences such as arrest [1].

The illicit gains were largely made in Bitcoin, with the stolen cryptocurrency then converted into cash through USDT via hawala operators based in the UAE. This conversion method allowed the perpetrators to obscure the trail of their transactions. The raids were conducted under the Prevention of Money Laundering Act (PMLA), and authorities have provisionally attached assets belonging to one of the accused, Chirag Tomar, including 18 properties in Delhi and bank account credits totaling approximately Rs. 42.8 crore [1].

This operation follows closely on the heels of another major investigation into a $4.7 million crypto scam, where an Indian national was arrested in the United States for spoofing the website of crypto exchange Coinbase. These back-to-back actions reflect a broader trend of increased regulatory scrutiny in India’s crypto space. In March 2025, the ED selected CoinDCX to manage seized digital assets, signaling a more structured approach to handling crypto-related financial crimes [1].

Indian law enforcement has ramped up efforts to combat cryptocurrency fraud in response to rising adoption and a series of high-profile scams, including the BitConnect and GainBitcoin schemes. The ED previously seized digital assets worth around $198 million from the BitConnect case, while the CBI recovered $2.88 million in the GainBitcoin investigation. These cases highlight the growing sophistication of fraudsters and the need for stronger enforcement mechanisms [1].

The latest raids underscore the global nature of crypto fraud and the cross-border collaboration required to dismantle such operations. As India continues to grapple with the challenges of regulating digital assets, these enforcement actions serve as a warning to bad actors and a reassurance to legitimate investors in the sector.

Source: [1] Indian Enforcement Directorate Raids Several Cities in $29M Crypto Fraud Ring (https://cryptonews.com/news/indian-enforcement-directorate-raids-several-cities-in-29m-crypto-fraud-ring/)