In a significant breakthrough, the Directorate of Enforcement (ED) Kochi Zonal Office arrested two individuals, Sayid Muhammad and Varghese TG, in connection with a fake Chinese loan app scam. The duo is accused of orchestrating a fraudulent scheme involving 500 mule bank accounts, through which a staggering Rs 719 crore was processed, representing Proceeds of Crime (POC) generated from victims of the loan app scam.
Sayid Muhammad and Varghese TG are said to be part of an international network facilitating illegal cross-border transactions. In addition to the mule bank accounts, the accused were linked to 26 cryptocurrency accounts on WazirX, a crypto trading platform. These accounts were also tied to the illicit funds, which were transferred to overseas crypto wallets, amounting to Rs 115.67 crore.
Investigations have revealed that part of the stolen money was also sent to Singapore using traditional banking routes and through M/s Nium India Pvt Ltd, a cross-border remittance platform. Nium is under investigation by the agency for facilitating these transfers, allegedly disguised as fake imports of software, digital services, and travel services.
In February 2024, the ED conducted raids across more than 10 locations in Mumbai, Chennai, and Kochi, resulting in the seizure of multiple electronic devices containing incriminating evidence. Additionally, Rs 123.58 crore was discovered in various bank accounts linked to the scam. The ED has since frozen this amount.
Earlier, four more individuals were arrested from Tamil Nadu for utilizing similar tactics to remit funds to Singapore, furthering the agency’s investigation into the operation.
