The Enforcement Directorate (ED) has arrested a cryptocurrency trader for his alleged involvement in an online betting scam and international hawala transactions of over ₹1,100 crore.
The accused has been identified as Naisar Kothari. The agency got his custody from December 13 to 22 for questioning in connection with the money laundering case.
The probe against Linkyun Technology Private Limited, Dokypay Private Limited and others is based on a FIR registered by the Hyderabad police, on a complaint from a victim alleging that he lost money by investing in a betting application.
“Subsequent investigation revealed that apart from providing payment aggregator re-seller services to banned applications in India, these Chinese-owned companies were indulging in international hawala and illegal activities. Login credentials and dongles for HSBC Bank accounts and payment aggregators like Paytm, Cashfree, Razorpay, etc., were shipped to China and were being operated from there,” said the agency.
Three persons, including a Chinese national, were arrested earlier in the case and a chargesheet was filed against them.
Following the money trail, the ED found that a large amount of money was being inexplicably transferred to some cryptocurrency traders based in Gujarat’s Bhavnagar.
The agency zeroed in on Kothari who had bought USDT cryptocurrencies on behalf of the accused company and transferred them to unknown wallets on foreign exchanges. More accomplices of the main accused persons are being identified.
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