ED arrests man accused of routing betting scam money through shell firms

The ED alleges that Armstrong Exchange was used to launder proceeds of crime generated through the illegal gaming and betting operations, with hundreds of crores of rupees allegedly routed through cooperative bank accounts and shell entities

MUMBAI: The Enforcement Directorate’s Mumbai zonal unit has arrested Sagar Dash, owner of Armstrong Exchange Private Limited, in a money laundering investigation linked to alleged online gaming and betting fraud conducted through All Panel Exchange (APX) and related cyber scams.

ED arrests man accused of routing betting scam money through shell firms

The ED alleges that Armstrong Exchange was used to launder proceeds of crime generated through the illegal gaming and betting operations, with hundreds of crores of rupees allegedly routed through cooperative bank accounts and shell entities.

The investigation was initiated on the basis of three FIRs registered in connection with online gaming and betting activities and cyber frauds, in which complainants allegedly suffered losses running into crores of rupees.

According to the agency, the funds were first routed through multiple mule accounts maintained with Jubilee Hills Mercantile Cooperative Bank in Hyderabad and subsequently transferred to various shell entities.

Further analysis of the transactions revealed that substantial amounts from these entities were transferred to the nodal account of Armstrong Exchange Pvt Ltd, maintained with Nagarbhavi Credit Cooperative Society in Bengaluru. The company had been established by Dash, the ED said.

As part of the investigation, the ED had earlier conducted searches at multiple locations in Pune, Mumbai, Bengaluru, Hyderabad, Surat and Mehsana in Gujarat. The searches resulted in the seizure of suspected documents and the freezing of approximately ₹9crore across several bank accounts.

The agency has also arrested Ram U Ramdhani, CEO of Edsom Fintech Pvt Ltd, in the same case.