New Delhi: The Enforcement Directorate (ED), Mumbai Zonal Office-II, has arrested Sagar Dash in connection with an online gaming and betting scam allegedly operated through All Panel Exchange (APX) and related cyber-fraud activities.
He was arrested October 27 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, and a Special Court in Mumbai has remanded him to three days of ED custody.
According to an ED press release issued Saturday, the investigation was initiated on the basis of three FIRs registered in connection with online gaming, betting and cyber-fraud cases in which complainants were allegedly cheated of crores of rupees.
The investigation revealed that the proceeds of the alleged fraud were routed through multiple mule bank accounts via Jubilee Hills Mercantile Cooperative Bank, Hyderabad, before being transferred to various shell entities.
Further analysis revealed that significant amounts transferred from these shell entities were subsequently deposited into the nodal account of Nagarbhavi Credit Cooperative Society, Bengaluru.
The ED further stated that the KYC details and fabricated documents of Nagarbhavi Credit Cooperative Society were allegedly used by Dash to open a cryptocurrency account.
“Investigation has revealed that Nagarbhavi Credit Cooperative Society’s KYC and fabricated documents were used by Sagar Dash to open a crypto account,” the agency said.
It further alleged that Dash routed approximately hundreds of crores of rupees through the cooperative society’s bank account, a substantial portion of which was directly linked to the proceeds of crime generated through illegal online gaming and betting platforms by targeting unsuspecting victims through cyber scams.
Earlier in the case, the ED had conducted searches at multiple locations across Pune, Mumbai, Bengaluru, Hyderabad, Surat and Mehsana in Gujarat. The searches led to the seizure of incriminating documents and the freezing of approximately Rs 9 crore lying in multiple bank accounts.
The agency had also arrested Ram U. Ramdhani, CEO of Edsom Fintech Pvt. Ltd., in connection with the case.
The ED said it remained committed to tracing and dismantling illicit financial networks and ensuring strict enforcement of the PMLA, 2002. Further investigation is underway.
