Prateek Tanmay
3 min readBengaluruJul 21, 2026 07:22 PM IST
The Enforcement Directorate (ED) said on Tuesday that it unearthed a $35-million cryptocurrency scam run by Bengaluru-based men after a Dutch entity complained to the police that it had been cheated out of funds on the promise of discounted crypto tokens.
As per an FIR registered by the cybercrime police station in South Andaman, the fraudsters promised the Dutch entity discounted crypto tokens, including MultiverseX, Kava, BEAM, GRASS, SUI, VANA and AGLD, but never fully delivered them.
According to ED, the accused—identified as Mohammed Waseem, Saurabh Diwan, and Vaibhav Gupta—earned the Dutch company’s trust through Telegram groups, in-person meetings, and fabricated credentials. They allegedly began by smoothly executing smaller over-the-counter (OTC) crypto transactions, a tactic the agency says was designed to lure the entity into committing far larger sums. They then claimed to have guaranteed steeply discounted access to direct token allocations from well-known crypto projects.
Once multi-million-dollar investments came in, the accused allegedly stopped delivering tokens altogether as market prices for the assets rose, withholding the promised distributions.
ED said it found that the funds, routed through crypto wallets, reached Ravindra K, a Bengaluru man it identified as the mastermind behind the OTC operation.
‘Key opinion leaders’ in cryptocurrency
The accused are self-styled “key opinion leaders” who promoted themselves online, including on social media platforms such as Telegram, WhatsApp, and Instagram, according to officials. They claimed tie-ups with blockchain developers that supposedly gave them discounted access to token allotments, which they used to canvas investors promising high returns, only to withhold the tokens or the promised payouts.
ED searched multiple locations on July 18 and 19 in connection with the alleged scam and seized digital devices, emails, and wallets used to move the proceeds of crime, along with virtual digital assets worth 8,700 Tether USD, a form of cryptocurrency.
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The searches also uncovered evidence suggesting the fraud extends well beyond the original complaint, with several foreign entities and investors appearing to have been cheated in a similar manner.
This pushed the estimated scale of the scam from around $10 million, as stated in the FIR, to approximately $35 million.
ED said proceeds from the crime were invested in movable and immovable properties, personal expenses, and business ventures.
ED said further investigations in the case are underway. It has not revealed the name of the Dutch entity.
