The Enforcement Directorate (ED) has arrested two chartered accountants (CA) and a cryptocurrency trader in connection with a Rs 640 crore money laundering scheme linked to a cyber fraud investigation.
Between November 28 and 30, the ED conducted searches at 13 locations across Delhi, Gurugram, Jodhpur, Jhunjhunu, Hyderabad, Pune, and Kolkata. These operations led to the seizure of Rs 47 lakh in unexplained cash and cryptocurrencies worth Rs 1.3 crore.
The ED investigation unmasked a nexus of certain Chartered Accountants (CAs), Company Secretaries (CS) and Crypto Traders, who are working in tandem in a systematic format, to launder the proceeds of crime collected.
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The investigation stems from two FIRs filed by the Economic Offences Wing (EOW) of the Delhi Police, detailing a major cyber fraud involving scams such as online betting, gambling, fake part-time job offers, and phishing schemes targeting unsuspecting individuals.
The laundered funds were funneled through over 5,000 “mule” bank accounts in India, with transactions designed to obscure their origins before being funneled into a UAE-based payment platform. A large portion of the illicit money was then withdrawn in Dubai using debit and credit cards issued by Indian banks.
As part of the operation, two Chartered Accountants, Ajay Yadav and Vipin Yadav, along with cryptocurrency trader Jitendra Kaswan, were taken into custody.
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In addition to the arrests, a fourth individual, the brother of a fugitive CA, was detained for obstructing and attacking ED officials during a raid at a farmhouse in southwest Delhi’s Bijwasan on November 28.
Investigations revealed a large-scale money laundering scheme orchestrated by foreign handlers who communicated through encrypted messaging platforms. These handlers provided instructions for opening mule accounts, circulating illicit funds, and buying cryptocurrency.
Authorities recovered over 2,000 documents, including debit and credit transaction details and records of cryptocurrency purchases, which are currently under analysis.
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Radhe Shyam Sharma, the brother of the alleged mastermind, CA Ashok Kumar Sharma, was arrested for obstructing and physically assaulting ED officials during the raid. The operation at the farmhouse also resulted in the seizure of critical evidence, including incriminating documents, cheque books, ATM cards, PAN cards, digital signatures, and trust phrases used to operate secret cryptocurrency wallets.
The ED’s investigation has uncovered a highly coordinated criminal network that blends finance and technology to perpetuate cyber fraud and launder illicit proceeds. Authorities are continuing to analyze the recovered evidence to fully expose the scale of the scam and ensure those involved face justice.
The Institute of Chartered Accountants of India (ICAI) is yet to respond officially to the arrests and involvements of the Chartered Accountants in the elaborate cybercrime.
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