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Bengaluru crypto influencers face Enforcement Directorate probe over an alleged $35 million fraud, with raids, asset seizures and money‑laundering charges –
A Enforcement Directorate (ED) money‑laundering probe has been opened into Bengaluru‑based crypto influencers accused of defrauding overseas investors of roughly $35 million (over Rs 300 crore) through promised token allocations that were never delivered or only partially delivered [3].
| At a glance | |
|---|---|
| Alleged fraud amount | $35 million (≈ Rs 300 crore) |
| Investigation trigger | South Andaman cyber‑crime FIR and Dutch complaint |
| Search dates | July 18‑19 2024 raids on multiple Bengaluru premises |
| Seized assets | Digital devices and ~8,700 USDT stablecoins |
The ED says the influencers marketed themselves as “key opinion leaders” and claimed direct, heavily discounted token allocations from projects such as MultiverseX, Kava, BEAM, GRASS, SUI, VANA and AGLD [3]. Investors were approached via Telegram, WhatsApp, Instagram and in‑person meetings, and were asked to transfer digital assets rather than use regulated payment channels. Initial small deals built trust, after which larger sums were moved through several wallets, ultimately reaching a central figure identified as Ravindra K in Bengaluru [3].
Searches were carried out at six Bengaluru locations on July 18‑19, with officers seizing computers, email archives, wallet records and encrypted account details [3]. Among the seized crypto was about 8,700 USDT, a stablecoin pegged to the US dollar, which investigators hope will trace the flow of funds between wallets and personal accounts [3]. The probe was launched under the Prevention of Money Laundering Act following a South Andaman cyber‑crime FIR and a complaint from a Dutch commercial entity that lost funds in over‑the‑counter (OTC) digital‑asset transactions [3].
The alleged fraud highlights the vulnerability of overseas investors to unregulated token‑sale promises and the growing scrutiny of cross‑border crypto remittances in India. While the ED has not yet secured convictions, the investigation may expand as authorities examine offshore wallets and additional foreign entities that could have been affected [3].
The probe underscores the risks of informal crypto investment promises and signals that Indian enforcement agencies are intensifying scrutiny of cross‑border digital‑asset transactions, a trend that could reshape how influencers market token sales globally.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jul 28, 2026 · How we report
The Directorate of Enforcement estimates the fraud to be worth about $35 million, equivalent to more than Rs 300 crore.
UNODC reported estimated losses of $88.3 billion to $114.1 billion, with a significant portion linked to cryptocurrency investment fraud.
Perpetrators called victims posing as police officers, urging them to transfer cryptocurrency to accounts that appeared to be official police wallets, then laundered the funds.
Authorities seized digital devices and virtual assets worth about 8,700 USDT during searches of several Bengaluru locations.
Because the fraudulent transactions involve multiple foreign accounts and cross‑border crypto flows, making coordinated law‑enforcement efforts necessary.