Online Stock Investment Scam: ED Searches 6 Payment Gateways, Freezes ₹18.4 Crore and 129 Bank Accounts

Moneylife Digital Team 16 June 2026

Economy & Nation

The directorate of enforcement (ED) has frozen 129 bank accounts containing balances of ₹18.4 crore and conducted searches at eight locations across Mumbai, Thane, Bengaluru and Gurugram in connection with an online investment fraud and money laundering investigation.

The searches were carried out on 1st June and 4 June 2026 by the ED's Kolkata zonal office under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

According to the agency, the search operations covered the premises of Payx Digital Payment Pvt Ltd, Smoothpe Digital Pvt Ltd, Kinsen Business Solution Pvt Ltd, Safexpay Technologies Pvt Ltd (now Touras Tech Global Pvt Ltd), Gyan Kuber Ltd and Decentro Tech Pvt Ltd.

ED said various incriminating documents and digital evidence were seized during the searches and are currently being examined. In addition to freezing the 129 bank accounts under Section 17(1A) of the PMLA, the agency has also frozen several lockers linked to the investigation.

Probe Linked to Cyber Fraud FIRs

The money laundering investigation stems from multiple first information reports (FIRs) registered by the cybercrime police station under the Bidhannagar police commissionerate in West Bengal.

According to investigators, fraudsters allegedly lured victims via social media platforms and WhatsApp groups named 'Stock Frontline C4' and 'Vanguard C7'. Investors were encouraged to invest money through mobile applications, including CHC-SES, ALICE and ESCORTS, on the promise of high returns from initial public offerings (IPOs) and stock market investments.

ED said the applications displayed substantial profits after investors deposited funds, creating the impression that the investments were generating strong returns. However, when investors attempted to withdraw their money, they were allegedly asked to make additional payments on various pretexts, including taxes and other charges.

As a result, numerous investors were allegedly cheated by the accused persons operating the scheme.

Complex Layering of Funds Detected

The agency said its investigation under the PMLA revealed that proceeds generated from the cyber fraud were allegedly routed and layered through a network of mule entities, charitable trust accounts and payment gateway companies.

According to ED, analysis of financial transactions showed funds being received from suspected mule accounts, followed by multiple layers of transfers through different entities before being routed onwards. Large-value transactions were also found moving among payment gateway companies, a pattern that investigators believe was intended to conceal and launder the proceeds of crime.

The probe further uncovered what the agency described as common directorships, shared business premises, financial connections and fund transfers among several of the entities under scrutiny.

Digital Evidence under Examination

Officials said the documents and digital records seized during the searches are being subjected to detailed analysis to identify the full extent of the alleged fraud and trace the movement of funds.

ED is also examining the role of the various entities and individuals connected to the financial transactions uncovered during the investigation.

Further investigation is underway, the agency said.

Comments

User

v.sasthamani

3 months ago

So many findings, so many attachments of properties and bank balances but it takes many years to get back the funds lost. This is mainly because of the fact that the fraud investigation agencies are being used by the ruling party to political gains or political vendetta. These agencies are there to serve the public who lost money whereas they are serving the party that has built up the largest bank balance. Anyway we will wait till 2047. We are such a highly tolerant and a highly forgetful society.

devraj.r

3 months ago

The most alarming part is that this appears to still be active despite multiple FIRs already being registered. Victims continue to suffer while there is little visible action from investigating agencies or serious follow-up by journalists and media outlets.

How many more people need to be cheated, and how many more families need to be affected before this receives the attention it deserves? I can provide live details and information indicating that the operation is continuing. Authorities and the media must act urgently before more victims are trapped.