The Enforcement Directorate (ED) has arrested two individuals in connection with an alleged nationwide cyber fraud and money laundering network involving transactions worth more than ₹400 crore. Investigators suspect that the network used mule bank accounts, cash withdrawals and cryptocurrency transactions to move money collected through online scams.
According to the supplied report, the ED's Chennai Zonal Office-II arrested Roshan Fiaz and Ammar on October 30, 2026, under the Prevention of Money Laundering Act (PMLA). Both were subsequently produced before a special PMLA court in Chennai, which reportedly remanded them to 14 days of judicial custody.
The investigation is examining suspected financial links across several states and more than 600 cybercrime complaints allegedly associated with the network.
Investigation Originated from Cybercrime Cases
The ED's probe began with two criminal cases registered by Cyberabad cybercrime police and the Tamil Nadu State Cyber Crime Command Centre.
During the investigation, authorities reportedly identified 10 additional FIRs registered in Telangana, Karnataka and West Bengal. Investigators also traced more than 600 cybercrime complaints suspected to be connected to the financial network.
The multiple complaints indicate the possible scale of the suspected operations, although the exact relationship between every complaint and the accused individuals remains subject to investigation.
The agency is examining banking records and financial transactions to establish how money obtained from victims was collected, transferred and distributed among different accounts.
Fake Investment and Job Offers Used to Target Victims
According to investigators, individuals operating the suspected network approached victims through telephone calls and social media platforms.
The alleged schemes involved misleading offers relating to:
Investment opportunities promising attractive returns.
Fake employment and job-related offers.
Share market and trading schemes.
Victims were allegedly persuaded to transfer money into bank accounts controlled by members of the network. Investigators suspect that the funds were subsequently moved through multiple accounts using smaller transactions, complicating efforts to identify the original source and final beneficiaries.
The investigation is examining the financial accounts associated with these transactions to establish the extent of the suspected fraud.
Mule Bank Accounts and Cryptocurrency Under ED Scrutiny
A major focus of the investigation is the alleged use of mule bank accounts to receive and transfer money generated through cyber fraud.
The ED reportedly found that funds were moved through several banking channels before some amounts were withdrawn in cash or converted into cryptocurrency, including USDT.
Investigators identified 31 bank accounts allegedly controlled by Roshan Fiaz. These accounts were reportedly held in his name, his wife's name and the names of associated firms and entities.
According to the agency's findings cited in the report, debit and credit transactions through these accounts exceeded ₹300 crore.
The ED is examining the movement of funds across these accounts and the suspected conversion of money into digital assets as part of its effort to identify the beneficiaries and establish the alleged money laundering trail.
Investigators Outline the Alleged Roles of Two Accused
The report describes different alleged roles for the two arrested individuals.
Roshan Fiaz is suspected of controlling bank accounts used to route money linked to cyber fraud and facilitate cryptocurrency-related transactions.
Ammar is alleged to have arranged mule bank accounts and supplied banking kits associated with those accounts. These reportedly included internet banking credentials, SIM cards, mobile phones and email IDs.
Investigators suspect that the arrangements helped facilitate the movement of funds through multiple banking channels. The agency is examining whether other individuals and entities also participated in the suspected network.
These alleged roles have not been established as findings of guilt and remain subject to the legal process.
ED Seizes Cash and Cryptocurrency Assets
Earlier searches conducted under Section 17 of the PMLA reportedly resulted in the seizure of ₹14.5 lakh in cash and cryptocurrency assets valued at approximately ₹3.2 crore.
The agency also froze ₹88.2 lakh held in bank accounts linked to the investigation.
These actions form part of the ED's effort to identify and secure assets suspected to be connected with the alleged proceeds of crime. The seized and frozen amounts are separate from the reported overall transaction volume of more than ₹400 crore.
The investigation is continuing across multiple states, with authorities examining the links between online fraud complaints, banking channels and cryptocurrency transactions.
The case highlights the importance of financial transaction monitoring and identifying suspicious account activity in large-scale digital fraud investigations. Shunyatax's financial investigation services provide information on financial scrutiny and transaction-related investigations.
The arrests and asset-related actions are part of an ongoing investigation. The allegations against the accused must be established through the relevant judicial proceedings.