Enforcement Directorate (ED) is conducting a probe into Chinese companies that resort to fraudulent online betting, cheating people and sending the proceeds earned using illegal acts to China. These transactions have been taking place through technical transactions involving cryptocurrency and is a multi-layered procedure.
It has been found that these corrupt firms have already laundered INR 1,100 Crore from just two accounts. The ED made Chinese national Yan Hao the prime accused after he was arrested in a case that involved him changing the names of two companies. The ED named Delhi-based Jagadamba Trading Company two Gurgaon-based companies – Dokypay Technology and Linkyun Technology along with their directors and associates as accused in their enforcement case information report (ECIR).
Later, a Delhi-based cryptocurrency trader Naisar Sailesh Kothari from Bhavnagar in Gujarat was added as an accused. The ED started probing into this issue as the Hyderabad cyber crime police kicked off the investigation owing to a complaint made in July 2020 by S Praveen Kumar. The complainant was cheated of INR 97,000 through the gaming website htpps.baronclubs.com.
Kumar, who hails from Sitaphalmandi in Secunderabad also mentioned that he was added to a 5,000-member Telegram app group before being cheated. According to the ECIR, the ED stated that the accused created multiple websites that look like e-commerce platforms.
In the ECIR, the ED further added, “If a player wants to indulge in gambling and betting, he has to come through a referral code provided by the Telegram groups. All those who add new members to these gaming groups were paid incentives. These groups offer predictions to the gamblers and lure players into investing in betting and eventually commit a fraud. Most of these websites will remain inactive and the admins of these Telegram groups would show it to their members where to gamble and which site is active.”
The ED also mentioned in the report, “The name of the game where members place their bets and engage in the game is called Colour Prediction. The two companies, Dokypay, and Linkyun collect money from the members through Paytm and CashFree payment gateways. These devious firms use domain name servers which are China-based. These data hosting servers are cloud-based in the US but are controlled by Beijing T Power, a China-based company.”