Back
India’s ED uncovers $35 million OTC crypto scam, seizes 8,790 USDT

India’s ED uncovers $35 million OTC crypto scam, seizes 8,790 USDT

Investigators allege self-styled crypto key opinion leaders lured foreign investors with discounted token allocations that were never delivered, as searches widened the estimated losses beyond the original complaint.

USDT

Fact Check
The official Enforcement Directorate X post (@dir_ed) confirms the core facts: PMLA searches on 18-19 July 2026 into an OTC virtual digital assets scam defrauding foreign investors through discounted crypto tokens, with USDT and devices seized. Cryptotimes and Odaily corroborate the same narrative. The $35M/₹337 crore figure and the 'key opinion leaders' framing come from the news reports describing widened losses rather than the ED tweet itself, and the seizure amount shows a minor variance (ED states ~8,700 USDT vs. the claim's 8,790 USDT). These are small reporting discrepancies that do not undermine the substance of the claim, which is well supported by an authoritative government source plus two independent outlets.
    Reference: 123
Summary

India’s Enforcement Directorate is investigating an alleged $35 million (₹337 crore) over-the-counter crypto scam in which self-styled key opinion leaders promised foreign investors discounted token allocations that were never delivered. The agency said the probe, launched under the Prevention of Money Laundering Act from a South Andaman cybercrime FIR, names Mohammed Waseem, Saurabh Diwan and Vaibhav Gupta, with funds allegedly routed to Bengaluru-based Ravindra K., whom investigators describe as the mastermind behind the OTC business. Searches at multiple locations on 15 and 19 July yielded digital devices, emails, wallet records and 8,790 USDT. The ED said the initial complaint pointed to losses of about $10 million (₹96 crore), but its inquiry expanded the figure to roughly $35 million after identifying additional foreign entities and investors allegedly defrauded through the same method.

Terms & Concepts
  • OTC: Over-the-counter trading conducted directly between parties rather than on a public exchange.
  • key opinion leaders: Prominent online promoters or influencers whose perceived credibility can help market investment opportunities.
  • Prevention of Money Laundering Act: India’s anti-money-laundering law, used by authorities to investigate and pursue proceeds of alleged crime.