The Enforcement Directorate (ED) has uncovered an alleged money-laundering network involving suspected illegal online betting proceeds and cyber fraud transactions routed through multiple bank accounts in Hyderabad and Bengaluru. Investigators are examining how funds allegedly generated through online gaming and fraudulent activities were transferred through mule accounts, suspected shell entities and cooperative banking institutions.
The investigation is linked to the All Panel Exchange (APX) online gaming and betting platform. According to the ED, hundreds of crores of rupees may have moved through a network of financial accounts and entities suspected of being connected to illegal gaming operations.
The case originated from three First Information Reports (FIRs) involving online gaming, betting and cyber fraud, in which complainants reportedly suffered losses amounting to crores of rupees.
How Were Mule Bank Accounts Allegedly Used to Transfer Funds?
The ED's investigation has identified multiple suspected mule accounts maintained at Jubilee Hills Mercantile Cooperative Bank in Hyderabad.
Mule accounts are bank accounts allegedly used by individuals or entities to receive and transfer money on behalf of others, sometimes concealing the original source or destination of funds.
Investigators suspect that accounts at the Hyderabad-based cooperative bank were used to route proceeds associated with illegal online betting and cyber fraud. The funds were allegedly transferred onwards to suspected shell entities and other financial institutions.
The agency is examining the transactions to establish the origin of the money, the parties involved and the purpose of the transfers.
The APX platform is a central part of the investigation, with authorities looking into the financial relationships between the suspected betting operations and the banking network.
What Did Investigators Find in Bengaluru?
The financial investigation reportedly identified substantial transfers from suspected shell entities to the nodal account of Nagarbhavi Credit Cooperative Society in Bengaluru.
The account was maintained on behalf of Armstrong Exchange, an entity established by a person identified in the report as Dash.
According to the ED's findings, hundreds of crores of rupees passed through the cooperative society's account. A substantial portion of these transactions allegedly originated from online gaming and betting activities linked to cyber fraud.
Investigators further alleged that Dash used the cooperative society's Know Your Customer (KYC) documents and fabricated records to open a cryptocurrency account.
The suspected use of cooperative banking accounts, intermediary entities and cryptocurrency-related arrangements has become a significant area of the investigation.
Authorities are examining whether these financial arrangements were used to obscure the movement of suspected proceeds and make the transactions more difficult to trace.
What Action Has the Enforcement Directorate Taken?
The ED had earlier conducted searches at several locations across Hyderabad, Pune, Mumbai, Bengaluru, Surat and Mehsana in Gujarat.
During these operations, investigators reportedly seized documents and froze approximately ₹9 crore held in multiple bank accounts.
The agency also arrested Ram U Ramdhani, chief executive officer of Edsom Fintech, in connection with the investigation.
Separately, a special court dealing with cases under the Prevention of Money Laundering Act (PMLA) in Mumbai reportedly remanded a male accused to three days of ED custody. However, the supplied report does not clearly establish the identity of the individual referred to in that custody order.
These actions form part of the agency's wider examination of the suspected financial network and the individuals and entities allegedly involved in handling the funds.
What Is the Focus of the Continuing Investigation?
Investigators are examining the financial links between the Hyderabad-based mule accounts, suspected shell entities, Armstrong Exchange and Nagarbhavi Credit Cooperative Society.
The inquiry is also focused on the alleged use of fabricated KYC records in cryptocurrency-related arrangements and the movement of funds between different banking institutions.
The investigation aims to establish how the suspected proceeds were received, transferred and handled, while identifying the individuals and entities allegedly responsible.
The case highlights the importance of financial transparency, reliable customer verification and effective monitoring of unusual transactions across banking and digital financial services.
Organisations can strengthen their financial oversight and review suspicious transaction patterns through Shunyatax's financial investigation and forensic support, particularly when examining financial discrepancies, transaction records and potential internal control weaknesses.
Why the Case Matters for Banking and Financial Compliance
The alleged use of cooperative bank accounts and intermediary entities highlights the challenges financial institutions face when monitoring complex transaction networks.
Banks and financial organisations are expected to maintain appropriate KYC procedures, monitor unusual account activity and follow applicable anti-money-laundering requirements.
The investigation also demonstrates why financial records must be examined across connected accounts and entities rather than assessed in isolation.
As the ED continues its inquiry, further findings may clarify the extent of the suspected network, the movement of funds and the roles allegedly played by the different entities.