The Enforcement Directorate has frozen bank funds worth ₹18.4 crore across 129 bank accounts as part of a money laundering investigation linked to an alleged online investment fraud.
The case involves suspected fake stock market and Initial Public Offering schemes that allegedly duped investors through social media platforms, WhatsApp groups and mobile applications.
According to the ED, the action followed search operations across four states, including Mumbai and Thane, where investigators examined the movement of funds generated through the alleged fraud network.
Investors Lured Through Social Media and WhatsApp
Investigators said victims were approached through social media platforms and WhatsApp groups with promises of high returns from stock market investments and IPO opportunities.
The fraudsters allegedly created a sense of legitimacy by directing investors toward mobile applications that appeared to show trading activity and rising profits.
The applications identified by the agency include “CHC-SES”, “ALICE” and “ESCORTS”.
Fake Apps Showed Profits but Blocked Withdrawals
According to the ED, the apps displayed substantial profits and growing investment returns after victims transferred money.
This created the impression that the investments were performing well.
However, when investors attempted to withdraw their funds, they were allegedly blocked from accessing the money.
Instead, they were asked to make additional payments in the name of taxes, processing charges and other fees.
Cases Registered by Cyber Crime Police
The alleged scheme is linked to multiple cases registered by the Cyber Crime Police Station under the Bidhannagar Police Commissionerate in West Bengal.
The cases relate to suspected cyber fraud involving fake investment schemes that targeted members of the public.
The ED took up the money laundering investigation to examine how the funds were collected, routed and allegedly layered through different entities.
Searches Conducted in Four Cities
Search operations were carried out between June 1 and June 4 at eight locations across Mumbai, Thane, Bengaluru and Gurugram.
During the searches, investigators examined entities suspected of facilitating financial transactions connected to the alleged fraud.
The companies covered during the operation included:
- PayX Digital Payment Pvt Ltd
- Smootphe Digital Pvt Ltd
- Kinsen Business Solution Pvt Ltd
- Safexpay Technologies Pvt Ltd
- Gyan Kuber Ltd
- Decentro Tech Pvt Ltd
₹18.4 Crore Frozen Across 129 Accounts
During the operation, the ED froze bank balances amounting to ₹18.4 crore spread across 129 bank accounts.
Certain lockers were also frozen.
Officials said incriminating documents and digital evidence were seized and are now being examined as part of the ongoing investigation.
ED Probes Alleged Laundering Network
According to the agency, the investigation has revealed that proceeds of crime generated through the alleged cyber fraud were routed through a network of mule entities, charitable trust accounts and payment gateway companies.
The ED said transaction patterns showed funds being received from suspected mule accounts, layered through multiple entities and then moved through payment gateways.
Investigators believe these transactions may have been structured to conceal and launder the proceeds of crime.
Common Directors and Financial Links Under Review
The ED further said its investigation has found common directors, shared business premises, financial linkages and fund transfers among several entities under scrutiny.
Officials are continuing to examine the role of accused persons, companies, payment intermediaries and other organisations connected to the alleged fraud.
Why Investors Must Stay Alert
Fake IPO and stock investment scams often use professional-looking apps, social media groups and fabricated profit dashboards to build trust.
Investors should verify all investment platforms through official regulatory channels, avoid unverified WhatsApp trading groups and never pay additional fees to withdraw funds from suspicious apps.
If an investment platform promises guaranteed high returns with low risk, it should be treated as a major warning sign.
Clean Financial Records Help Detect Fraud
Investment fraud investigations often involve multiple bank accounts, mule entities, payment gateways and layered transactions.
For businesses, maintaining accurate records and proper transaction trails is critical for detecting suspicious activity early. Professional bookkeeping services in india can help organisations organise financial data, track fund movement and remain prepared for compliance or fraud-related reviews.
Shunyatax Global Insight
At Shunyatax Global, we believe financial awareness and documentation are essential safeguards in the digital investment era. The ED’s action in the fake IPO and stock investment scam shows how quickly online fraud networks can exploit trust, technology and weak verification habits.
For more updates on cybercrime, investment fraud, compliance, taxation and business finance, visit Shunyatax.in and stay connected with Shunyatax Global.