The Enforcement Directorate (ED) has arrested two men in connection with an alleged nationwide cyber-fraud and money-laundering network involving transactions of more than Rs 400 crore, the agency said. The ED's Chennai Zonal Office-II arrested Roshan Fiaz and Ammar on October 30 under the Prevention of Money Laundering Act (PMLA), and the arrests were reported in the agency's statement on November 5, Mirror Now and other outlets reported.

Source: Mirror Now

According to the ED, the investigation began from cases registered by the Cyberabad cybercrime police and the Tamil Nadu State Cyber Crime Command Centre, and later found links to at least 10 more FIRs in Telangana, Karnataka and West Bengal. The agency alleged that money collected from hundreds of victims of online fraud was moved through mule bank accounts and cryptocurrency transactions to conceal its origin. These are the agency's allegations and have not been proved in court.

31 accounts, Rs 300-crore transactions alleged

Investigators identified 31 bank accounts allegedly controlled by Fiaz in his own name, his wife's name and those of associated firms and entities, with debit and credit transactions through these accounts exceeding Rs 300 crore, according to the agency. Ammar allegedly supplied mule accounts and banking kits containing internet banking credentials, SIM cards, mobile phones and email IDs.

Earlier searches under Section 17 of the PMLA led to the seizure of Rs 14.5 lakh in cash and cryptocurrency assets worth about Rs 3.2 crore, and the freezing of about Rs 88.2 lakh in bank accounts linked to the investigation, the ED said. Both accused were produced before a special PMLA court in Chennai, which remanded them to 14 days of judicial custody. Further investigation is under way, the agency said.