Authorities seize digital evidence and trace international cryptocurrency transactions

Lucknow, August 29, 2025: The Enforcement Directorate (ED) has arrested two individuals in connection with a massive ₹260 crore cryptocurrency-based money laundering operation spanning multiple states. “Authorities apprehended the accused, Rahul Mishra and Nirmal Kumar, during coordinated raids in Lucknow, Gonda, and Raebareli.” The crackdown is part of an ongoing probe into a sophisticated cyber fraud syndicate.

Officials said the syndicate operated through several fraudulent applications, including Superpay, Bropay, Sarkpay, Avitor, and Teenpatti. “The syndicate promoted these apps on messaging platforms like Telegram and WhatsApp, successfully luring users with promises of easy earnings.” However, the applications defrauded users through betting schemes and predatory loan practices. Investigators revealed that the group amassed approximately ₹112 crore in illicit gains, with a portion allegedly routed to Pakistan using cryptocurrency.

The ED has been coordinating with cryptocurrency exchanges to trace the flow of these funds and identify additional collaborators overseas. “The accused not only defrauded users but also attempted to conceal the illicit proceeds through layered crypto transactions,” an ED official said. The agency emphasized the international scope of the operation, noting that such digital financial crimes require global cooperation to dismantle.

During the raids, authorities recovered smartphones containing details of 85 bank accounts, of which 31 showed suspicious activity amounting to ₹60.24 crore. Law enforcement also seized over ₹1 lakh in cash, multiple SIM cards, and other digital devices. These items are currently under forensic examination to map the full extent of the network’s operations.

“The Enforcement Directorate will present the accused before a special PMLA court and plans to seek custody for further questioning.” Investigators claim that the group invested some diverted funds in real estate projects and overseas ventures. The agency is also probing whether the syndicate funneled additional crime proceeds through other shell firms and digital channels.

Banking and cybercrime experts say this case highlights growing concerns over cryptocurrency’s role in facilitating financial crimes. Large-scale frauds erode public trust in financial institutions and contribute to the burden of non-performing assets (NPAs). “The digital financial ecosystem needs robust monitoring and regulatory oversight to prevent such illicit activity,” said a senior banking official.

“The arrests further expand the growing list of high-value cyber fraud cases that the ED and CBI have been investigating in recent years.” Authorities urge the public and financial institutions to remain vigilant and report any suspicious online financial activity. The operation demonstrates the ED’s commitment to tackling money laundering and cyber fraud, sending a strong message to organized crime syndicates exploiting digital platforms.

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