​The Enforcement Directorate (ED) has uncovered a significant financial fraud involving offshore online gaming platforms, revealing that approximately ₹4,000 crore was illicitly transferred abroad under the guise of payments for imported goods and services. These operations were conducted across multiple states, including Delhi, Maharashtra, Gujarat, Madhya Pradesh, and Andhra Pradesh.​

Offshore Operations: The implicated online gaming companies were registered in jurisdictions such as Curacao, Malta, and Cyprus. Despite their foreign registration, these entities were linked to Indian bank accounts opened in the names of proxy individuals with no actual involvement in the gaming activities. This setup facilitated the routing of funds through numerous bank accounts before being remitted abroad.​

Layering and Remittance Scheme: The ED discovered that the funds collected from Indian users via gaming platforms were funneled through multiple shell companies. These companies were established using falsified documents, including PAN and Aadhaar cards, and operated bank accounts to layer and remit the funds abroad. The remittances were falsely declared as payments for imports, circumventing the Foreign Exchange Management Act (FEMA).​

Use of Technology to Evade Detection: To conceal their identities and operations, key individuals employed international virtual mobile numbers and pseudonyms such as “Pablo,” “John,” and “Watson” on messaging platforms like WhatsApp, Telegram, and Signal. Additionally, remote access tools like Anydesk and TeamViewer were utilized to operate from distant locations, further obscuring their activities.​

Seizures and Evidence: During the raids, the ED seized over ₹19 lakh in cash, approximately $2,695, and froze 55 bank accounts associated with these fraudulent activities. Incriminating documents and electronic devices were also confiscated, providing evidence of the illegal remittances and the complex layering schemes employed.​

This investigation highlights the growing concerns over the misuse of online platforms for illicit financial activities and underscores the need for stringent regulatory measures to combat such practices.​

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