Enforcement Directorate Busts Decade-long Multi-tate Crypto Investment Scam

TLDR

Table of Contents

The scam operated across Karnataka, Maharashtra, and Delhi for nearly ten years.
Fraudsters used fake crypto platforms, referral schemes, and social media to attract investors.
Enforcement Directorate is tracing crypto wallets, foreign accounts, and shell companies.
Early investors were paid small returns while later investors were encouraged to recruit others.

Indian authorities have conducted coordinated raids across multiple states targeting a crypto investment scam that operated for nearly a decade. The scheme allegedly used fake crypto platforms, referral programs, and social media to lure investors in India and abroad. Investigators are tracing crypto wallets, foreign accounts, and assets while continuing a money-laundering probe. The Enforcement Directorate (ED) said the operation involved complex mechanisms to conceal illicit funds over the years.

Nationwide Raids Target Crypto Scam

The Enforcement Directorate carried out searches at 21 locations across Karnataka, Maharashtra, and Delhi. The operation focused on residential and office premises linked to 4th Bloc Consultants and its associates.

🚨 ED CRACKDOWN: MAJOR CRYPTO FRAUD EXPOSED!
Directorate of Enforcement (ED) has conducted raids at 21 locations across Karnataka, Maharashtra, and Delhi. This action was taken in connection with a major crypto investment fraud case involving M/s. 4th Bloc Consultants.
MODUS… pic.twitter.com/51FXrw3WdB
— Crypto Aman (@cryptoamanclub) December 24, 2025

The raids were conducted on December 18 under the Prevention of Money Laundering Act (PMLA). Authorities said the investigation followed a police FIR and intelligence inputs from the Karnataka State Police. Officials added that the targets were linked to a network running fake crypto investment platforms.

Scam Structure and Investor Targeting

Investigators said the group operated professional-looking websites mimicking legitimate crypto trading platforms. Websites displayed dashboards, account balances, and transaction histories to create the impression of real trading activity.

However, officials said little or no actual trading occurred, and the operation resembled a Ponzi or multi-level marketing scheme. Early investors received small returns to build trust, and later were encouraged to invest more and recruit new participants.
Social media platforms such as Facebook, Instagram, WhatsApp, and Telegram were heavily used to attract victims.

Fund Laundering and Asset Tracing

Authorities said the scammers moved proceeds through crypto wallets, foreign accounts, shell companies, and hawala networks. Funds were transferred via peer-to-peer crypto transactions before conversion into cash or placement in bank accounts.

During raids, the ED identified multiple crypto wallet addresses allegedly controlled by the accused. Movable and immovable assets were located in India and abroad, purchased with illicit funds. Several foreign entities were also used to obscure the money trail and avoid regulatory detection.

Scam Timeline and Ongoing Investigation

Officials believe the operation dates back to at least 2015 and evolved over time to avoid scrutiny. The accused allegedly misused photographs of crypto commentators and public figures to gain credibility among investors.

The investigation is ongoing as authorities continue tracing funds and verifying ownership of assets. The ED emphasized that the probe will cover all involved individuals and entities both in India and overseas.