The Directorate of Enforcement (ED) has carried out large-scale search operations across Tamil Nadu, Kerala and Srinagar as part of an ongoing money laundering investigation linked to alleged online investment scams and fraudulent work-from-home schemes. The searches were conducted on July 10 and 11 under the provisions of the Prevention of Money Laundering Act (PMLA) at 19 locations, including 16 premises in Tamil Nadu, two in Kerala and one in Srinagar.
The investigation is based on two cybercrime cases initially registered by the police in Tamil Nadu and Telangana, which alleged that several individuals had defrauded victims through fake online investment platforms and deceptive employment offers.
According to the Enforcement Directorate, the accused allegedly attracted victims by promising unusually high investment returns and lucrative commissions through fraudulent work-from-home opportunities. Believing the offers to be genuine, numerous individuals reportedly transferred money into bank accounts controlled by the suspects. Investigators estimate that nearly ₹14.95 crore was collected through these alleged fraudulent activities.
The agency claims that after receiving the funds, the accused used a network of mule bank accounts and shell companies to move the money through multiple financial channels. The funds were then allegedly converted into cryptocurrency and transferred across various digital wallets in an attempt to conceal their origin and complicate the financial trail.
The ED has identified Roshan Fiaz as one of the key individuals allegedly involved in laundering the suspected proceeds of crime. However, officials have clarified that the allegations remain under investigation and are subject to judicial scrutiny.
According to investigators, Roshan Fiaz and his associates allegedly operated numerous bank accounts in their own names, in the name of his wife and through several business entities. The agency believes that many beneficiary accounts were opened shortly before receiving the alleged fraud proceeds and were closed soon after the money was transferred elsewhere, suggesting an attempt to hide the movement of funds.
The investigation further alleges that ₹80,000 linked to one of the cybercrime cases was transferred to the account of R.K. Electrical, an entity reportedly associated with Roshan Fiaz. In another transaction under examination, investigators claim that more than ₹45 lakh was transferred from a co-accused's bank account to Roshan Fiaz. The ED is continuing to examine these financial transactions and the role of the companies involved.
During the search operations, officials seized several documents, digital devices, laptops, mobile phones, banking records, company incorporation papers and records related to suspected shell companies. Investigators also recovered details of cryptocurrency wallets and other virtual digital assets that may help establish the complete movement of the alleged proceeds of crime.
According to the agency, cryptocurrency assets valued at approximately ₹3.35 crore and ₹14.50 lakh in cash were seized during the raids. Additionally, bank accounts containing more than ₹40 lakh have been frozen as part of the ongoing investigation.
Cybercrime expert and former IPS officer Prof. Triveni Singh observed that online investment scams increasingly rely on sophisticated money laundering techniques involving mule accounts, shell companies and cryptocurrency. He noted that digital forensics, blockchain analysis and coordinated investigations between financial and law enforcement agencies are essential for tracing illicit funds, identifying those responsible and strengthening prosecution in complex cyber-enabled financial crimes.
The Enforcement Directorate stated that the investigation is continuing and that additional action will depend on the evidence collected during the probe. The agency also reiterated that all allegations remain subject to judicial determination, and the guilt or innocence of the accused will ultimately be decided by the competent court.
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