Mumbai: The Enforcement Directorate (ED) has arrested Sagar Dash, founder of Armstrong Exchange Pvt Ltd, for allegedly routing hundreds of crores of rupees through a network of mule accounts and shell entities linked to illegal online betting operations run through All Panel Exchange (APX). The agency arrested Dash on October 27 under the Prevention of Money Laundering Act (PMLA), 2002.
The arrest is part of an ongoing investigation into alleged money laundering involving online gaming and betting platforms and related cyber frauds. The ED initiated its probe on the basis of three FIRs registered in connection with cases in which several complainants were allegedly cheated of crores of rupees.
According to the ED investigation, the proceeds of crime(PoC) generated through illegal online gaming and betting operations were routed through multiple mule bank accounts maintained with Jubilee Hills Mercantile Cooperative Bank in Hyderabad before being transferred to several shell entities. Further analysis of the money trail revealed that substantial amounts from these entities were subsequently transferred to the nodal account of Nagarbhavi Credit Cooperative Society in Bengaluru, maintained on behalf of Armstrong Exchange Pvt Ltd, a company established by Dash.
The agency has alleged that Dash allegedly used the KYC details and fabricated documents of Nagarbhavi Credit Cooperative Society to open a cryptocurrency account and route hundreds of crores of rupees generated through illegal online betting and gaming operations. Armstrong Exchange Pvt Ltd, a Bengaluru-based company established by Dash and registered in the wholesale and retail trade category, allegedly used its banking arrangements with the cooperative society to channel these funds into cryptocurrency and facilitate payouts to the bank accounts of several retail individuals. A substantial portion of the funds routed through the account was found to be linked to PoC generated through betting platforms that allegedly defrauded unsuspecting victims through cyber frauds. The ED is now investigating the role of Dash and his alleged links with other persons connected to the financial network, including the extent of their involvement in routing and transferring the POC.
A week earlier, the ED conducted searches at multiple locations in Mumbai, Pune, Bengaluru, Hyderabad, Surat and Mehsana in Gujarat. The searches resulted in the seizure of incriminating documents and the freezing of approximately Rs 9 crore in multiple bank accounts. The agency had also arrested Ram U Ramdhani, CEO of Edsom Fintech Pvt Ltd, in connection with the investigation.
To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/
