ED chargesheet links Hong Kong, Thai scammers to cyber fraud racket in India
The Enforcement Directorate (ED) found that individuals in Hong Kong and Thailand led a cyber fraud and money laundering scheme.
With help from associates in India, in connection with the digital arrest scam case and cybercrime involving proceeds worth Rs 159 crore. These scammers worked with people in India to create digital signatures, set up shell companies, and act as dummy directors to open bank accounts, using fake documents sent through WhatsApp.
The central probe agency filed a chargesheet on October 10, in the special court under the Prevention of Money Laundering Act (PMLA) in Bengaluru. The special court in Bengaluru took note of the chargesheet on October 29.
The chargesheet includes eight accused — Charan Raj C, Kiran S K, Shahi Kumar M, Sachin M, Tamilarasan, Prakash R, Ajith R, and Aravindan — along with 24 related companies. All the accused are in judicial custody.
The ED probe followed multiple First Information Reports (FIRs) from various law enforcement agencies across the country, reporting schemes where cyber fraudsters allegedly tricked people with false stock market investments and fake digital arrests, leading victims to transfer funds to shell companies.
The ED’s findings show an organised cyber scam network in the nation, which reportedly used social media platforms like Facebook, Instagram, WhatsApp, and Telegram. Known as “pig-butchering” scams, these schemes misled individuals with promises of high returns through fraudulent apps and stock market investments.
Fake law enforcement scenarios were also used to coerce individuals into transferring money under false pretences.
The central probe agency said that fraudsters created shell companies across states, including Tamil Nadu and Karnataka, primarily registered at co-working spaces without a real business presence. Fake documents were allegedly submitted to the Registrar of Companies.
Many companies were used as “mule” accounts to transfer funds, later converted into cryptocurrency and moved abroad. Key figures reportedly linked to the scam were connected with bank accounts and digital signatures used in shell companies.
Searches at the residences of the accused led to the seizure of documents, chequebooks, and identification materials linked to these shell companies. The ED investigation also revealed that some individuals operated WhatsApp groups to manage and authorise fraudulent transactions.
The probe agency has frozen Rs 2.81 crore in assets linked to Cyberforest Technology Pvt Ltd and has conducted 17 searches, recovering additional evidence across the country.