ED Arrests Two Chartered Accountants and Crypto Trader in ₹640-Crore Cyber Fraud Case

The Enforcement Directorate (ED) has made significant arrests in a high-profile cyber fraud case involving ₹640 crore. Two chartered accountants and a cryptocurrency trader were apprehended as part of an extensive investigation into a scam that exploited victims through fake job offers, phishing, and online betting schemes.

Key Takeaways

• Arrests Made: Two chartered accountants, Ajay Yadav and Vipin Yadav, along with crypto trader Jitendra Kaswan, were arrested.
• Fraud Mechanism: The fraud involved over 5,000 mule bank accounts and utilized a UAE-based payment platform, PYYPL.
• Seizures: Authorities seized ₹47 lakh in cash and cryptocurrency worth ₹1.36 crore during raids across multiple cities.
• Ongoing Investigation: The ED is continuing to investigate the broader network of individuals involved in the scam.

Overview of the Fraud

The cyber fraud scheme reportedly generated substantial illicit funds through various deceptive practices, including betting, gambling, and part-time job scams. Victims were lured into these schemes, leading to significant financial losses.

The ED's investigation was initiated based on two First Information Reports (FIRs) filed by the Central Bureau of Investigation (CBI). The CBI's involvement stemmed from a complaint received from the Ministry of Home Affairs, which highlighted the scale and complexity of the fraud.

Details of the Arrests

The arrests were made following coordinated raids at 13 locations across several cities, including New Delhi, Gurugram, Jodhpur, Jhunjhunu, Hyderabad, Pune, and Kolkata. The following items were seized during these operations:

• ₹47 lakh in cash
• Cryptocurrency valued at ₹1.36 crore
• Various incriminating documents, including cheque books, ATM cards, PAN cards, and digital signatures

The Role of Mule Accounts

The investigation revealed that the fraudsters utilized a network of over 5,000 mule accounts to siphon off funds from victims. These accounts were used to layer the funds, making it difficult to trace their origins. The money was subsequently transferred to the UAE-based payment platform, PYYPL, for further laundering.

Attack on ED Team

During the investigation, the ED team faced resistance when attempting to enter the premises of the main accused, chartered accountant Ashok Kumar Sharma. An individual, Radhe Shyam Sharma, the brother of the absconding main accused, was arrested for allegedly attacking the ED team and obstructing their operations.

Conclusion

The ED's crackdown on this cyber fraud case highlights the growing concern over financial scams in the digital age. As investigations continue, authorities are working to dismantle the networks behind such fraudulent activities and protect potential victims from future scams. The case serves as a reminder of the importance of vigilance in online transactions and job offers.

Sources

• ED arrests two CAs, one crypto trader in ₹640-crore cyber fraud case, The Hindu.
• ED and CBI Arrest CAs and Crypto Trader in Rs 640-Crore Cyber Fraud Bust, NDTV Profit.
• ED arrests two CAs, crypto trader in Rs 640-cr cyber fraud case - The Tribune, The Tribune.
• ED arrests two CAs, crypto trader in Rs 640-cr cyber fraud case, Deccan Chronicle.
• Rs 640-cr cyber fraud case: ED arrests two CAs, crypto trader - The Economic Times, The Economic Times.