Tag: Enforcement Directorate

  • Enforcement Directorate Seizes ₹1,906 Crore in Assets from Gameskraft in Money Laundering Probe

    Enforcement Directorate Seizes ₹1,906 Crore in Assets from Gameskraft in Money Laundering Probe

    The Enforcement Directorate (ED) has attached assets worth ₹1,906 crore belonging to Gameskraft as part of a money laundering investigation into the company’s real-money gaming operations. The agency claims that these platforms created an ‘addictive’ gaming environment that encourages players to spend money repeatedly.

    According to an official statement, the action was taken under the Prevention of Money Laundering Act on July 22, in connection with the RummyCulture, RummyPrime, Playship, and RummyTime apps. With this latest attachment, total seizures and asset attachments in the case have reached approximately ₹2,401 crore.

    The ED alleges that these real-money gaming platforms were part of an illegal online betting and gaming network operated through the company’s platforms. The investigation revealed that Gameskraft and RummyTime Technologies had a user base of around 3 crore players, primarily in Telangana, Andhra Pradesh, and Tamil Nadu.

    The agency further claims that the platforms typically earn revenue by charging a platform commission of 10–15% from players. Additionally, the ED asserts that the firms used BOTs — automated programs and algorithms — to play against users who were unaware of the operating process.

    In its statement, the ED said, “These unscrupulous practices of the companies have created an addictive gaming environment that encouraged repeated wagering, thereby enabling the companies to generate huge proceeds of crime in the form of platform commission.”

    Compliance Challenges for Gaming Startups

    The Gameskraft case underscores the increased regulatory scrutiny facing the online gaming industry. As real-money gaming expands across India, companies are facing tougher checks on how they manage player funds, taxes, and legal compliance.

    The ED’s action could have lasting implications for India’s real-money gaming sector. Companies may now be more cautious about adhering to financial and legal rules to avoid similar investigations.

  • Bengaluru Crypto Influencers Investigated in $35 Million OTC Fraud Scheme

    Bengaluru Crypto Influencers Investigated in $35 Million OTC Fraud Scheme

    India’s Enforcement Directorate (ED) has launched a money laundering probe into an alleged cryptocurrency investment fraud worth approximately $35 million (over Rs. 300 crore). The case involves Bengaluru-based crypto influencers who are accused of promising discounted token allocations to overseas investors and then failing to deliver.

    How the Alleged Scheme Worked

    According to the ED, the suspects operated as self-proclaimed crypto ‘key opinion leaders’ and used Telegram, WhatsApp, Instagram, websites, and in-person meetings to lure victims. They claimed to have access to guaranteed, steeply discounted direct token allocations from major blockchain projects such as MultiverseX, Kava, BEAM, GRASS, SUI, VANA, and AGLD. These private placements typically occur before public exchange listings, making the promised discounts attractive to early buyers. The accused allegedly used false credentials and claimed direct ties with blockchain developers to support their offers.

    Investigators say the group initially completed smaller deals without issues to build trust before investors transferred larger amounts. Funds were routed through a network of wallets, with large portions traced to suspect Ravindra K in Bengaluru, who is believed to be the operator behind the over-the-counter (OTC) deals. After receiving multi-million-dollar investments, the accused allegedly stopped delivering tokens when crypto prices rose, causing investors to lose access to promised allocations.

    ED Actions and Seizures

    The ED’s Bengaluru Zonal Office carried out searches on July 18 and 19, seizing digital devices, emails, wallet records, and encrypted account details. Authorities also seized virtual assets worth about 8,700 USDT (Tether stablecoin). The probe began under the Prevention of Money Laundering Act following a complaint from a Dutch commercial entity and an FIR from the South Andaman Cyber Crime Police. Initial losses were estimated at $10 million, but further checks revealed the suspected fraud exceeded $35 million.

    Officials say the seized material may help trace how funds moved between wallets and personal accounts, and may identify more victims. The ED is reviewing offshore wallets and related payment records for additional transfers. International cooperation may become necessary as the suspected transactions crossed several countries. The agency continues to examine the full network and seeks to freeze assets connected to the case. No court has convicted the named individuals, and the allegations remain under investigation.