ED arrests two in Chennai over alleged Rs 400 crore online fraud laundering network
The ED said it arrested two people on 30 October 2026 who, it alleges, moved proceeds of online frauds through mule bank accounts and the cryptocurrency USDT.
Key points
- The ED's Chennai Zonal Office-II arrested two accused under the PMLA on 30 October 2026, it said in a release on 5 November 2026.
- The ED alleges proceeds of crime of over Rs 400 crore from hundreds of online frauds were layered through mule accounts and crypto.
- A special PMLA court in Chennai sent both accused to 14 days' judicial custody; the ED said investigation is continuing.
The Enforcement Directorate (ED) has arrested two people under the Prevention of Money Laundering Act (PMLA), 2002 in a case of online frauds whose proceeds, it alleges, were moved through networks of mule bank accounts and the cryptocurrency USDT. The ED's Chennai Zonal Office-II made the arrests on 30 October 2026, it said in a release on 5 November 2026.
What Happened
The ED said its case rests on two FIRs, one registered by the State Cyber Crime Command Centre of the Tamil Nadu Police and the other by the Cyber Crime Police Station, Cyberabad, Telangana. According to the agency, victims were contacted by phone or on social media with offers of investment schemes, jobs and share-market investments, and sent money to mule accounts. The money was then split into small amounts across further accounts, partly withdrawn in cash and partly moved into cryptocurrency wallets, the ED alleges.
The ED said it found 10 more FIRs in Telangana, Karnataka and West Bengal, and more than 600 cybercrime complaints, linked to the same network. It alleges that proceeds of crime of more than Rs 400 crore were layered through the network.
According to the ED, one accused was the key person in the network and operated mule accounts in his own name, his wife's and those of entities he controlled; it found debit and credit transactions of over Rs 300 crore in 31 such accounts. The agency alleges the second accused supplied mule accounts with account kits, net-banking credentials, SIM cards, phones and e-mail IDs.
Earlier searches led to the seizure of Rs 14.50 lakh in cash and cryptocurrency worth Rs 3.26 crore, and the freezing of about Rs 88.28 lakh in bank accounts, the ED said. A special PMLA court in Chennai remanded both accused to 14 days' judicial custody.
What It Means
The case shows how money from investment, job and trading offers made over phone or social media can be moved through other people's bank accounts and into cryptocurrency, according to the ED. Victims of online fraud can report it at https://cybercrime.gov.in or on helpline 1930.
These are allegations, not findings of guilt; the accused are presumed innocent until proven guilty in court, and due process continues.
This report describes enforcement actions and allegations on the public record, attributed to the officials cited. An order, FIR or chargesheet is not a conviction; parties are presumed innocent until proven guilty.
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Sources & Citations
- Enforcement Directorate press release — Enforcement Directorate