Bengaluru: The Directorate of Enforcement (ED) has launched an investigation into a cryptocurrency fraud worth 35 million USD (over ₹300 crore), with a Bengaluru-based crypto influencer and his associates accused of duping foreign investors through fraudulent over-the-counter (OTC) token deals.

The probe is being conducted under the Prevention of Money Laundering Act (PMLA) based on an FIR registered by the Cyber Crime Police Station in South Andaman following a complaint filed by a Dutch entity.

Foreign investors allegedly cheated through fake crypto deals

According to the ED, the accused allegedly lured investors by promising discounted allocations of popular virtual digital assets (VDAs), including MultiverseX, Kava, BEAM, GRASS, SUI, VANA and AGLD.

Investigators said initial smaller transactions were honoured to build trust. However, after investors transferred cryptocurrency worth millions of dollars, the promised digital tokens were allegedly never delivered.

The ED identified Ravindra K, a Bengaluru resident, as the alleged mastermind behind the OTC cryptocurrency transactions.

Influencers projected themselves as industry experts

The agency has also named Mohammed Waseem, Saurabh Diwan and Vaibhav Gupta as key accused.

According to investigators, the accused portrayed themselves as prominent cryptocurrency influencers and “key opinion leaders” (KOLs), claiming to have exclusive partnerships with blockchain developers. They allegedly used Telegram, WhatsApp, Instagram, websites and personal meetings to gain the confidence of foreign investors before persuading them to transfer virtual digital assets.

The proceeds of the alleged fraud were reportedly diverted towards personal expenses, business activities and investments in movable and immovable properties.

ED seizes crypto assets during searches

Following intelligence gathered during the investigation, ED officials conducted searches on July 18 and 19, seizing digital devices, email records, cryptocurrency wallets and 8,700 USDT believed to be linked to the fraud.

The agency said the investigation revealed that the scam was worth approximately 35 million USD, far exceeding the 10 million USD initially mentioned in the FIR. Officials believe several other foreign investors may also have been cheated but have not yet lodged formal complaints.

The investigation is continuing.