Hyderabad: Multiple mule accounts at the Jubilee Hills Mercantile Cooperative Bank were allegedly used to route funds generated through illegal online betting and cyber fraud before the money was transferred to shell entities and a Bengaluru-based cooperative society, the Enforcement Directorate (ED) has found.The investigation, linked to the All Panel Exchange (APX) online gaming and betting platform, revealed that hundreds of crores of rupees were routed through a cooperative society’s bank account, with a substantial portion allegedly linked to proceeds of crime.Hyderabad bank accounts under scannerThe ED’s Mumbai Zonal Office-II arrested an accused, identified as Sagar Dash, on Oct 27 under the Prevention of Money Laundering Act (PMLA). A special PMLA court in Mumbai subsequently remanded him to three days of ED custody.The money-laundering investigation stems from three FIRs related to online gaming, betting and cyber fraud, in which complainants allegedly lost crores of rupees.According to the ED, the funds were initially routed through multiple mule accounts at the Hyderabad-based cooperative bank and later transferred to various shell entities.Further examination of financial transactions revealed that significant amounts from these entities were transferred to the nodal account of Nagarbhavi Credit Cooperative Society in Bengaluru, maintained on behalf of Armstrong Exchange, an entity established by Dash.Fabricated KYC documents allegedly usedThe ED alleged that Dash used the cooperative society’s KYC documents and fabricated records to open a cryptocurrency account. Investigators found that hundreds of crores of rupees were routed through the society’s bank account, including substantial funds allegedly generated through illegal gaming and betting platforms involved in cyber fraud.Earlier, the ED conducted searches at multiple locations in Hyderabad, Pune, Mumbai, Bengaluru, Surat and Mehsana in Gujarat.The searches resulted in the seizure of documents and the freezing of approximately ₹9 crore across multiple bank accounts. The ED had earlier arrested Ram U Ramdhani, CEO of Edsom Fintech, in connection with the case. Further investigation is underway.
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