ED Raids Online Gaming Platform, Uncover Millions in Crypto Laundering Scheme

The Enforcement Directorate (ED) conducted search operations at various premises in Mumbai, Pune, and Bengaluru linked to online gaming and betting platform 'All Panel Exchange'. The ED's Mumbai Zonal Office conducted the search operations under the Prevention of Money Laundering Act (PMLA), 2002, and froze various bank accounts related to multiple entities/persons.

The investigation stems from a case involving an online gaming and betting platform, 'All Panel Exchange', through which a complainant was lured via a WhatsApp message into gaming/betting. The complainant was initially allowed to make withdrawals but subsequent requests were denied, and the operators became unresponsive.

The ED found that funds collected from victims of the gaming/betting platforms were routed into bank accounts maintained by Edsom Fintech Private Limited, a Pune-based entity. The accounts of Edson Finetch Private Limited and its related entities were linked to numerous cybercrime complaints filed by victims across the country.

In one instance, an FIR was registered against Edsom Fintech Private Limited and others by Bengaluru Police for online gaming fraud, in which a complainant was cheated of Rs 5.3 crore. The ED found that part of the proceeds of crime were systematically layered through shell/associate entities, converted into virtual digital assets through crypto platforms and ultimately moved to offshore entities/persons.