CHENNAI, November 6, 2026 — The Enforcement Directorate (ED) has dismantled a cyber fraud network in Tamil Nadu, arresting two men accused of defrauding over 600 people of more than Rs 400 crore.
Key Operatives Arrested
Roshan Fiaz of Chennai and Ammar of Pudukkottai were arrested on October 30 under the Prevention of Money Laundering Act (PMLA). The duo has been remanded to 14 days of judicial custody by the Special PMLA Court in Chennai.
Modus Operandi
The fraudsters lured victims through social media platforms, offering investment schemes, jobs, and share market investments. Victims were instructed to transfer money into mule accounts provided by the accused. The funds were then fragmented into smaller amounts, transferred through a network of mule accounts, and partially withdrawn in cash. The remaining sums were laundered through cryptocurrency wallets, notably using USDT.
Scale of the Fraud
The ED’s investigation, triggered by two FIRs from Tamil Nadu and Telangana, uncovered 10 additional FIRs in Telangana, Karnataka, and West Bengal linked to the same network. Over 600 complaints have been filed nationwide. Debit and credit transactions exceeding Rs 300 crore were traced to 31 mule accounts operated by Roshan Fiaz, the network’s key operative.
Cryptocurrency and Money Laundering
Cryptocurrency played a central role in the scheme, both as a means to transfer stolen funds and to purchase illicit services. The ED seized Rs 14.50 lakh in cash and cryptocurrencies worth Rs 3.26 crore during searches, in addition to freezing Rs 88.28 lakh in bank accounts.
Ammar facilitated the operation by supplying mule bank accounts, net banking credentials, SIM cards, and email IDs to Roshan Fiaz, enabling the receipt of funds from cryptocurrency buyers.
Rs 400 crore—the figure, for context, is roughly equivalent to the annual budget of a mid-sized Indian city.
Sources
- Tamil Nadu: ED busts Rs.400-crore cyber fraud network
- ED busts Rs 400crore cyber fraud network by arresting two TN men
- ED Busts Hyderabad-Linked ₹261 Crore Call Centre Scam That Targeted 20 Lakh Americans – The 420.in
Photo: Glenn Carstens-Peters / Unsplash (Unsplash License)
