India Blocks ₹2,385 Crore in Crypto Linked to Forex Scam

India’s Enforcement Directorate (ED) has provisionally attached ₹2,385 crore (~$271 million) in cryptocurrency assets under the Prevention of Money Laundering Act (PMLA), 2002. This sweeping action is part of a broader crackdown on illegal foreign exchange trading and digital asset misuse.

• Target: OctaFX Scam
  The crypto freeze is linked to the OctaFX forex trading platform, which allegedly defrauded Indian investors of ₹1,875 crore between June 2022 and April 2023. The platform reportedly operated from 2019 to 2024, generating illicit profits of up to ₹5,000 crore, much of which was routed overseas.
• Global Dragnet
  Spanish authorities arrested Pavel Prozorov, the alleged mastermind behind OctaFX, in coordination with Indian investigators. The ED’s Mumbai Zonal Office is leading the probe, which spans shell firms, offshore channels, and cross-border payment loops.
• Assets Seized
  
  • Crypto holdings worth ₹2,385 crore
  • Immovable properties and a luxury yacht previously attached
  • Total seized assets in the case now exceed ₹2,681 crore

This case signals India’s intensifying scrutiny of crypto-linked financial crimes and its resolve to regulate digital assets under existing anti-money laundering frameworks.

The first media outlet to report India’s ₹2,385 crore crypto freeze linked to the OctaFX forex scam was BreakingCrypto, publishing the story on October 17, 2025 at 4:54 PM EDT. Hindustan Times followed shortly after with its own coverage at 5:20 PM IST the same day.

Anil Ambani Under ED Scanner in ₹3,000 Crore Loan Fraud Case

In a sweeping crackdown, the Enforcement Directorate (ED) has launched extensive raids on over 35 locations linked to industrialist Anil Ambani and his former companies, investigating an alleged ₹3,000 crore loan fraud involving Yes Bank. The probe, conducted under the Prevention of Money Laundering Act (PMLA), marks a significant escalation in scrutiny of Ambani’s financial dealings.

ED Targets Alleged Loan Diversion

The ED’s investigation centers on loans disbursed between 2017 and 2019, during which Yes Bank allegedly extended credit to entities connected to Anil Ambani without proper due diligence. According to officials, the loans were approved using backdated documents, and funds were routed through shell companies with common directors and addresses, raising red flags about the legitimacy of the transactions.

Sources suggest that bribes may have been paid to bank officials to facilitate the loan approvals. The ED suspects that the diverted funds were used for purposes unrelated to the original loan intent, violating banking norms and triggering money laundering concerns.

SBI Labels RCom and Ambani as “Fraud”

The raids follow a recent move by the State Bank of India (SBI), which on June 13, 2025, officially declared Reliance Communications (RCom) and Anil Ambani as “fraudulent” entities. This declaration has intensified regulatory focus on Ambani’s past ventures, particularly those that collapsed under heavy debt.

Corporate Denials and Clarifications

In response to the raids, Reliance Infrastructure and Reliance Power—two companies still operational under the Reliance Group umbrella—issued statements distancing themselves from the controversy. Both firms emphasized that:

• They are independent entities with no financial linkage to RCom or Reliance Home Finance Ltd (RHFL).
• Anil Ambani does not hold any board position in either company.
• The matters under investigation are over a decade old, and many are either sub-judice or already resolved.

The companies reassured stakeholders that their operations remain unaffected and that they are cooperating with authorities as needed.

A Personal Flashback: Love Against the Odds

Amid the legal storm, a nostalgic human-interest story resurfaced, shedding light on Anil Ambani’s personal life. Decades ago, his parents—Dhirubhai and Kokilaben Ambani—initially opposed his relationship with Tina Munim, a popular Bollywood actress. Despite family resistance, the couple reunited and married in 1991, and have since built a life together, raising two sons.

Their enduring relationship stands in contrast to the turbulence surrounding Ambani’s business empire, offering a glimpse into the personal resilience behind the public figure.

What’s Next?

With the ED’s investigation gaining momentum and corporate entities scrambling to clarify their positions, the coming weeks could prove pivotal for Anil Ambani’s legacy. Whether this probe leads to formal charges or further revelations remains to be seen.

The Nagpur Today was the first media outlet to report on the Enforcement Directorate (ED) raids against Anil Ambani, publishing their coverage on July 24, 2025, at 12:23 PM IST. The report detailed the scope of the investigation, including:

• Raids at over 35 premises, involving 50 companies and 25 individuals
• Alleged ₹3,000 crore loan diversion from Yes Bank between 2017–2019
• Suspected bribes to Yes Bank promoters
• Violations like backdated loan documents, shell companies, and common directors

This was followed closely by other outlets like:

• Republic World
• Indian Express
• MSN India

ED Cracks Down on Gurugram Startup Probo in ₹284.5 Crore Betting Probe

The Enforcement Directorate (ED) has initiated a sweeping crackdown on Probo Media Technologies Pvt. Ltd., a Gurugram-based startup behind the popular opinion trading app “Probo,” amid mounting allegations of illegal betting and money laundering.

Raids & Frozen Assets

On July 8–9, ED officials conducted raids at four key locations in Gurugram and Jind, Haryana. The operation led to the freezing of assets worth ₹284.5 crore, which included fixed deposits, shares, and contents of three bank lockers. Investigators also flagged foreign funding amounting to ₹134.84 crore, allegedly routed through entities based in Mauritius and the Cayman Islands.

Controversial ‘Opinion Trading’ Model

Probo operates as a platform where users speculate on real-world outcomes—such as political events or sporting results—by answering simple binary questions (yes or no). Although marketed as a skill-based opinion exchange, the ED asserts the model mirrors conventional gambling, lacking safeguards or clarity in outcomes.

Regulatory Red Flags

According to ED findings, the platform:

• Permitted signups without age verification, raising concerns about minors accessing betting content
• Skirted proper KYC (Know Your Customer) protocols. 
• Ran misleading advertisements that allegedly promoted addictive behavior. 
• Potentially violated foreign exchange laws under FEMA provisions

Probo Responds

In response to the probe, the company stated it is fully cooperating with authorities and maintains that it has complied with all applicable legal frameworks. It emphasized the “skill-based” nature of its service, distancing itself from traditional gambling operations.

In a mail to Indianweb2.com, Probo Media Technologies' official statement reads:

As India's leading opinion trading platform serving 4.2 crore users, we want to reassure all stakeholders that we are cooperating fully with authorities and remain committed to operating with complete transparency and compliance.

NDTV broke the story on July 9 at 10:54 PM IST, reporting the raids and financial freezes. Subsequent coverage by Business Standard, Livemint, and Economic Times provided deeper analysis on fintech implications and regulatory trends.

What’s at Stake

With the rise of prediction markets and decentralized gaming platforms, this case could have far-reaching implications for how India classifies and regulates tech-driven “betting-like” models. It also shines a spotlight on foreign investments in emerging tech startups and the need for clearer compliance protocols.

Paytm Gets Show Cause Notice from ED for Violating FEMA in Acquisition Deals

Paytm, operated by One97 Communications (OCL), has received a show cause notice from the Enforcement Directorate (ED) for alleged violations of the Foreign Exchange Management Act (FEMA). The notice involves transactions worth over ₹611 crore related to the acquisition of its subsidiaries, Little Internet Private Limited (LIPL) and Nearbuy India Private Limited (NIPL), between 2015 and 2019.

The alleged violations pertain to investment transactions involving ₹245 crore in OCL, ₹345 crore in LIPL, and ₹20.9 crore in NIPL. Paytm has stated that these compliance issues occurred before the subsidiaries were acquired by the company.

The notice has been issued to One97 Communications Limited, two of its acquired subsidiaries, LIPL and NIPL, and certain current and past Directors and officers of the company and its two subsidiaries, the Paytm's regulatory filing stated.

In the exchange filing, Paytm said,"Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 , we hereby inform that a show cause notice dated February 27, 2025 has been received by the Company on February 28, 2025 at 19.27 Hrs. from the Directorate of Enforcement, Government of India. This is in relation to alleged contraventions for the years 2015 to 2019 of certain provisions of the Foreign Exchange Management Act, 1999 (“FEMA”) by the Company, in relation to its acquisition of two subsidiaries namely Little Internet Private Limited (“LIPL”) and Nearbuy India Private Limited (“NIPL”) erstwhile Groupon, along with certain Directors & Officers."

"Certain alleged contraventions attributable to two acquired companies - Little Internet Private Limited and NearBuy India Private Limited - pertain to a period when these were not subsidiaries of the Company," the filing said.

Paytm said in a comment,

We are working towards resolving the notice in accordance with applicable laws and regulatory processes. The alleged FEMA contraventions are related to two acquired subsidiaries - Little and Nearbuy - with certain transactions from before they became part of Paytm.

There is no impact on Paytm's services, which continue to be fully operational and secure.

We remain committed to transparency and governance in all our business practices.

This development follows recent regulatory actions against Paytm, including a case settled with the Securities and Exchange Board of India (SEBI) and regulatory action from the Reserve Bank of India (RBI) against Paytm Payments Bank.

India Seizes Cryptocurrencies Worth ~ $1,651 Crore, Cash and A Lexus Car in Bitconnect Fraud Crackdown

The Enforcement Directorate (ED) in India seized cryptocurrency worth approximately $198 million (₹1,646 crore) as part of their investigation into the BitConnect fraud. The seizures were made during searches conducted on February 11 and 15, 2025, under the Prevention of Money-Laundering Act (PMLA), 2002.

BitConnect was involved in a Ponzi scheme that promised high returns through a "volatility software trading bot," but in reality, the funds were siphoned off to digital wallets controlled by the fraudsters. The ED's investigation has been ongoing, and is part of a larger crackdown on the BitConnect cryptocurrency fraud.

BitConnect operated a Ponzi scheme from November 2016 to January 2018, promising high returns through a "volatility software trading bot". However, the funds were actually diverted to digital wallets controlled by the fraudsters. The ED's investigation revealed that no such trading bot existed, and the accused siphoned off the money.

In addition to the cryptocurrency, the ED also confiscated cash amounting to ₹13.5 lakh, a Lexus car, and several digital devices. The probe was initiated based on First Information Reports (FIRs) filed by the Crime Investigation Department (CID) in Surat.

The ED has been tracking a complex network of crypto wallets and gathering intelligence to pinpoint the location of the digital assets. This breakthrough has led to significant seizures and further scrutiny of the fraudulent activities surrounding BitConnect.

The BitConnect fraud has had a significant global impact, affecting investors worldwide. The $2.4 billion scam promised high returns through a fictitious "volatility software trading bot," leading to substantial financial losses for many.

Authorities in multiple countries, including the United States and India, have been investigating BitConnect. In the U.S., the Securities and Exchange Commission (SEC) filed charges against BitConnect's founder, Satish Kumbhani, and promoter Glenn Arcaro. Arcaro pled guilty and agreed to pay restitution to affected investors.

The recent seizure by the Enforcement Directorate (ED) in India is part of a broader effort to recover assets and compensate victims. The ED has been collaborating with global agencies to trace and seize digital assets linked to the fraud.

The BitConnect case has highlighted the vulnerabilities in the cryptocurrency market and the need for stronger regulatory frameworks. It has also underscored the importance of international cooperation in combating financial cyber crime.

This seizure sets a precedent for international asset recovery in the blockchain age. It demonstrates the evolving capacity of law enforcement agencies to tackle web-enabled fraud and recover assets for victims.

The global impact of the BitConnect fraud underscores the importance of vigilance and regulatory oversight in the rapidly evolving world of digital finance.

Chinese-owned Loan Apps' Companies Turn Rs 1 Cr to Rs 6 Cr in 90 Days, Finds ED Investigation

The Enforcement Directorate (ED) recently conducted an investigation into several Chinese-owned fintech companies operating in India. The investigation revealed that these companies were able to turn an investment of Rs 1 crore into Rs 6 crore in just 90 days by offering short-term loans through mobile apps.

These companies charged 30%-40% of the sanctioned loan amount as an upfront processing fee.

Interest rates on these loans were as high as 36%, making the effective annual interest rate reach up to 2,000%, eventually making repayment extremely difficult. This fee is charged every time a borrower takes a loan. These short-term loans are for anywhere between a week to four months.

According to an Indian Express report, the ED Investigation found that the borrowers and their contacts are also sent fake legal notices, messages labelling them as thieves, apart from adding them to Whatsapp groups where abusive messages are sent. Women contacts are harassed with obscene messages.

Borrowers often found themselves in a debt trap, taking new loans to pay off previous ones due to the high costs involved.

Despite the high costs, these companies managed to achieve a net profit margin of Rs 5.2 crore in just three months.

The ED sources said that, although such fintech companies have Indian employees, the ultimate owners are Chinese who take the decisions. In the recent case of PC Financial Services (PCFS) which ran the Cashbean app, ED found that Rs 429 crore was sent to Chinese owners allegedly through bogus transactions which are violations under FEMA.

Earlier this year, the ED conducted raids across 19 locations in Delhi, Chandigarh, Haryana, Punjab, and Gujarat and conducted investigation of several Chinese-owned fintech companies, including Shinebay Technology India Private Limited (STIPL) and Mpurse Services Private Limited (MSPL).

These companies were involved in unethical lending practices through mobile apps, leading to significant penalties and asset seizures. Borrowers were harassed through threatening phone calls, unauthorized access to personal information, and circulation of morphed photographs.

In April 2022, the ED had taken action by attaching assets worth Rs 6.17 crore belonging to these fintech companies. This investigation highlights the need for stricter regulations and oversight in the fintech sector to protect consumers from predatory lending practices.

The ED has initiated investigations under various sections of the Indian Penal Code (IPC) and the Information Technology Act, 2000.

The ED investigation has also found that these Fintech companies get into the lending business after entering into agreements with non-banking finance companies (NBFC) which have valid RBI licences. The NBFCs themselves earn a guaranteed return without investing anything by virtue of just holding the licences.

Govt Bans 174 Betting and Gambling Apps Upon Request By the Enforcement Directorate (ED)

The government of India has blocked a total of 581 apps, including 174 betting and gambling apps and 87 loan lending apps. The Ministry of Electronics and Information Technology (MeitY) issued a blocking order against some 22 'illegal' betting apps and websites, upon a request by the Enforcement Directorate (ED).

The banned apps were involved in money laundering through hawala, crypto, and other illegal routes. Some of the banned apps include Mahadev, Parimatch, Fairplay, 1XBET, Lotus365, Dafabet, and Betwaysatta. According to eeports, some of these platforms are currently being probed by the Enforcement Directorate (ED).

"Ministry of Electronics and Information Technology (MeitY) blocked a total of 581 applications under section 69A of IT Act, 2000 which includes 174 betting and gambling related applications, 87 loan lending applications and other applications including gaming applications like PUBG, GArena Free Fire etc," Pankaj Chaudhary, minister of state for finance, said in a reply to Lok Sabha, as reported by The Economic Times.

Betting and gambling activities are banned in India, under various State laws, however few games of skill have been held to be constitutionally valid by the Supreme Court in various judgements.

Early of last month, Ministry of Electronics and Information Technology (MeitY) had issued blocking orders against 22 illegal betting apps & websites, including Mahadev Book and Reddyannaprestopro. The action followed investigations conducted by the Enforcement Directorate (ED) against illegal betting app syndicate and subsequent raids on Mahadev Book in Chhattisgarh, revealing the app’s unlawful operations.

Ealier in February, the central government had also blocked 138 illegal betting and gaming websites. However, some of them were still operating.

In October, The Economics Times reported that the government found 114 illegal betting and gambling apps operating in the country through domain farming.

Last week, the Minister of State in a reply to a Lok Sabha (lower house) question, told parliament that no offshore companies have so far registered after October 1st.

ED seizes Hyderabad-located IT Park in FEMA violation case

The ED on Wednesday said it has seized an over Rs 86 crore worth IT park in Hyderabad's Gachibowli area in connection with an alleged foreign exchange law violation probe case. It is located at Nanakramaguda in the Gachibowli area of Telangana's capital Hyderabad.

The central agency, in a statement, said the asset belongs to Mack Soft Tech Private (MSTP) Limited which exists in the form of 'Q-City Tech Park' spread over 2,500 square yards and has 2,45,000 sq feet of building space.

The seizure of the asset has been made in lieu of foreign assets illegally held abroad by the firm, MSTP, in contravention of the Foreign Exchange Management Act (FEMA), the agency said.

A probe was initiated against a firm, MSTPL, on charges that it remitted huge funds outside the country, in contravention of the FEMA.

[caption id="attachment_132516" align="aligncenter" width="900"] Q-City Tech Park[/caption]

It was detected that MSTPL "illegally transferred foreign exchange" to the tune of USD 12,500,000 (equivalent to Rs 62.08 crore) to Orient Guide Investments Limited, Hong Kong, under the guise of purchase of a non-existent and fake software license.

Similarly, the company, during November 2011-December 2016 transferred foreign exchange to the tune of USD 3,980,000 (equivalent to Rs 24.30 crore) to Senat Legal Consultancy FZ LLC, UAE, and Cresco Legal Consultancy FZ LLC, UAE, in the name of legal services.

"This was a sham transaction. The above foreign outward remittances on the pretext of purchase of software license and legal services were made by MSTPL with a view to siphon off funds from India and park them abroad," the Enforcement Directorate said.

Illegal holding of foreign assets outside the country is a contravention of section 4 of the FEMA and hence the agency seized equivalent assets in India in the form of the IT Park, equivalent to Rs 86.38 crore, under section 37A of the FEMA, it said. PTI NES

ED Issues Notice To Flipkart For Its Billion-Day Sale, May Slap Rs1000 Crore Penalty

Its seems like Flipkart's BigBillion Day Sale Blunder will last for some more time in news. In a most recent update and setback to Flipkart, ED (Enforcement Directorate) may soon impose a penalty on e-commerce giant after it conducted a probe on the company's trade practices. According to sources the amount of penalty may goes upto Rs.1000 crore.

On 6th October, Flipkart announced Big Billion Day sale where many customers reported that just before the sale goes up, all of sudden the prices of many of Flipkart's products were raised and then discounted which even after discounts are way higher than their regular prices. A day after sale, Flipkart however apologized to its customers for all glitches and clarified that higher prices of some of its commodities are due to technical errors which beyond control.

Moreover, ED, which probes financial irregularities, mainly money laundering and foreign exchange rule violations, is also probing other e-commerce companies such as SnapDeal.com and Amazon India.

There were many complaints from traders on Flipkart's massive discount sale on 6th October 2014. The government had assured that it will look into the concerns and take a call on whether more clarity is required on e-commerce retail business.

"We have received many inputs. Lot of concerns have been expressed. We will look into it," Commerce and Industry Minister Nirmala Sitharaman had said.

As per Hindustan Times, a highly placed sources at Enforcement Directorate said - "The quantum of irregularity has been calculated. The investigation is still on. We are yet to fix a penalty. We are probing other businesses as well because of which we cannot reveal what we have learned about Flipkart…It will alert others,” he said on condition of anonymity.

Flipkart has always been in the eyes of ED, earlier in August this year Enforcement Directorate slapped a show-cause notice on Flipkart over alleged FEMA violation. Also in 2013, a year after ED's probe began, Flipkart changed its business model, allowing buyers and sellers to deal independently through its platform.