India’s Largest Crypto Scam Under PMLA: ED Probes Fake Investment Platforms

India’s Enforcement Directorate (ED) has intensified its crackdown on crypto-related financial crimes after conducting searches on December 18 under the Prevention of Money Laundering Act (PMLA). The raids targeted residential and office premises linked to 4th Bloc Consultants and its associated entities, marking what authorities describe as one of India’s largest crypto scam investigations so far.

According to officials, the case originated from a police FIR and actionable intelligence shared by the Karnataka State Police. Investigators allege that the accused operated multiple fake crypto investment platforms designed to deceive investors in India and abroad. These platforms promised unusually high returns and were presented through professional-looking websites that closely resembled legitimate global cryptocurrency trading exchanges. The sites featured dashboards, account balances, and transaction histories to create an illusion of genuine trading activity.

However, the ED claims these platforms were largely a façade, with little to no actual crypto trading taking place. Instead, investor funds were allegedly recycled in a structure resembling a Ponzi or multi-level marketing scheme. Early participants reportedly received small payouts to build trust, after which they were encouraged to invest larger sums and recruit new members through referral-based incentives.

To further enhance credibility, the operators are accused of misusing photographs of well-known crypto commentators and public figures without permission. Social media platforms such as Facebook, Instagram, WhatsApp, and Telegram were heavily used to promote the schemes and attract victims globally.

Authorities believe the proceeds of crime were laundered through a complex network of crypto wallets, shell companies, undisclosed foreign bank accounts, and hawala channels. Funds were also moved via peer-to-peer crypto transfers before being converted into cash or parked in bank accounts. During the raids, investigators identified several crypto wallet addresses, along with movable and immovable assets acquired in India and overseas using illicit funds. Officials say the operation may date back to 2015, with the group evolving its methods to evade increasing regulatory scrutiny. The investigation remains ongoing.