India's ED Raids 11 Sites in $29M Crypto Fraud Probe Unveiling Global Extortion Scheme

India’s Enforcement Directorate (ED) carried out raids at 11 locations on August 5, 2025, as part of a $29 million global cryptocurrency fraud investigation. The operation, conducted under the Prevention of Money Laundering Act (PMLA), targeted a network that defrauded victims in India and abroad. The suspects reportedly impersonated law enforcement officials, investigative agencies, and tech support representatives from companies such as Microsoft and Amazon to extort money from individuals. In some instances, victims were threatened with arrest or legal action to compel them to transfer funds [1].

The illicit proceeds were largely converted into Bitcoin and later liquidated through USDT transactions, with the funds routed via hawala operators in the UAE. This method allowed the perpetrators to obscure the financial trail and evade detection. As part of the probe, the ED provisionally attached assets belonging to accused Chirag Tomar and his associates, including 18 properties in Delhi and bank credits valued at Rs. 42.8 crore (approximately $4.8 million) [1].

This investigation is part of a broader pattern of escalating crypto frauds. Just a day before the raids, the ED opened a separate case into a $4.7 million scam in which an Indian national was arrested in the U.S. for spoofing Coinbase’s website. These cases highlight the growing sophistication of digital scams and the Indian government’s increasing emphasis on strengthening regulatory and enforcement frameworks in the cryptocurrency sector [1].

The crackdown also reflects the ED’s heightened focus on digital asset-linked crimes. In March 2025, the agency appointed CoinDCX to manage seized digital assets, a move seen as a step toward more systematic oversight of crypto-related financial crimes. The agency has previously taken down major fraud schemes, including the BitConnect case—where $198 million in digital assets were seized—and the GainBitcoin case, in which $2.88 million was recovered [1].

In parallel, the Central Bureau of Investigation (CBI) recently dismantled a transnational cybercrime network, recovering over $327,000 in cryptocurrency. These operations demonstrate the increasing use of digital assets in organized crime and India’s growing capability to track and neutralize cross-border financial threats. As the adoption of cryptocurrencies continues to expand, the ED’s enforcement actions signal a stronger commitment to ensuring a secure and regulated digital financial ecosystem [1].

Source: [1] India’s Enforcement Directorate Raids 11 Locations in $29M Global Crypto Fraud Probe (https://coinmarketcap.com/community/articles/68932fc9ab637948cc1a2353/)