Kolkata, June 15: The Enforcement Directorate (ED) has intensified its crackdown on online investment fraud. On June 1 and 4, 2026, the Kolkata zonal office conducted searches at eight locations across Mumbai, Thane, Bangalore, and Gurugram under the Prevention of Money Laundering Act (PMLA), 2002.
The locations investigated included Pex Digital Payment Private Limited, SmoothPay Digital Private Limited, Kinsen Business Solutions Private Limited, SafePay Technologies Private Limited (now known as Taurus Tech Global Private Limited), Gyaan Kuber Limited, and Decentro Tech Private Limited.
During the searches, numerous incriminating documents and digital evidence were seized, which are currently under detailed examination. A total of 129 bank accounts, containing ₹18.4 crore, have been frozen under Section 17(1A) of the PMLA. Additionally, several lockers were also frozen during the operation.
The ED initiated its investigation based on multiple FIRs registered at the Bidhannagar Police Commissionerate’s Cyber Crime Police Station in West Bengal concerning cyber fraud linked to fake investments. Victims were lured to invest through apps like CHC-SES, Alice, and Escorts via social media platforms and WhatsApp groups (such as Stock Frontline C4 and Vanguard C7).
Investors were promised high returns on their investments in IPOs and the stock market. Initially, the apps displayed inflated returns, but when victims attempted to withdraw their funds, they were asked for additional money under the guise of taxes. Consequently, many investors fell victim to various perpetrators.
The investigation under the PMLA has revealed that the money earned through cyber fraud was funneled and layered through “mule entities,” charitable trust accounts, and payment gateway companies. Transaction patterns indicate that funds were received from suspicious “mule accounts,” with money exchanged among multiple entities and significant amounts transferred between payment gateways, suggesting efforts to conceal and launder the proceeds of crime.
The investigation has also uncovered common directors, shared business premises, financial relationships, and fund transfers among several of these entities. The ED continues its in-depth investigation.
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