Shell firms and crypto used in ₹641 crore fraud
The Directorate of Enforcement (ED) has arrested two chartered accountants in connection with a ₹641-crore cyber fraud and money laundering case that allegedly targeted victims across India through online scams.
Officials said Ashok Kumar Sharma and Bhaskar Yadav were arrested on February 28, 2026, under provisions of the Prevention of Money Laundering Act (PMLA) after they surrendered before a court. Their arrest followed multiple failed attempts to obtain anticipatory bail.
Large cyber fraud network
According to investigators, the accused were part of a large cyber-enabled fraud network that lured victims through fake investment schemes, part-time job offers, QR-code scams and phishing operations.
The fraudulently obtained money was first deposited into mule bank accounts operated through Telegram groups. The funds were then layered through shell and dummy companies to conceal the origin of the money.
Money routed through fintech and cryptocurrency
The ED said the laundered funds were transferred using debit cards issued by Indian banks to a UAE-based fintech platform called PYYPL. The money was later withdrawn abroad, particularly in Dubai, through ATM and point-of-sale transactions.
Investigators also found that part of the funds were converted into cryptocurrency through the Binance exchange and routed across multiple digital wallets to obscure the money trail.
Syndicate run by professionals
Officials said the laundering operation was run by a structured syndicate involving educated professionals, including chartered accountants.
The group allegedly controlled more than 20 shell companies operating from common addresses in Delhi’s Bijwasan area. These entities had overlapping partners and shared KYC documents, phone numbers and email IDs, suggesting coordinated activity.
Searches and arrests
The ED had conducted searches at multiple locations in November 2024. During the operation, Sharma allegedly fled the premises and attempted to obstruct officials, leading to an FIR being registered against him.
Both accused remained absconding for months before their bail pleas were rejected by courts, including the Delhi High Court and the Supreme Court. They later surrendered and were arrested under Section 19 of the PMLA.
Investigation continues
So far, the ED has arrested 10 individuals in the case and attached assets worth ₹8.67 crore through two provisional attachment orders.
Two prosecution complaints have also been filed before the special PMLA court, which has taken cognisance of the matter. Officials said further investigation is ongoing.
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