A significant step towards cracking down on illegal betting rings has been made by the Enforcement Directorate (ED), which has seized 40 kilograms of gold worth about 50 crore in 2 lockers within the Challakere town of the Chitradurga district. The recovery belongs to a continuing probe into a vast online betting network that is supposedly run by a prime suspect who is known as Veerendra and his partners.
One of the official statements indicated that the ED unearthed the gold through the search operations that were performed under the provisions of the Prevention of Money Laundering Act (PMLA). This was done following certain intelligence reports that online betting network proceeds were being changed to gold and stored in various sites in Karnataka.
The agency found out that the two lockers were identified as belonging to Veerendra and his close associates, who had allegedly been utilising online resources to conduct massive betting deals, usually transferring the cash through cryptocurrency exchanges and shell companies to hide the source. The ED believes that the gold was bought with laundered money and was supposed to be turned back into liquid in hawala at a later point.
Early evidence indicates that the betting ring was covering several spheres with users (both Indian and international). It is also stated that the network processed payments valued in a number of crores using encrypted applications and digital wallets. Investigators consider that the syndicate was connected with offshore betting platforms, which offered the technical background and payment gateways for these illegal activities.
According to the officials, attempts are being made to follow up the money trail to the fullest. The gold recovery is a very important step in bringing forward the financial support of one of the biggest online betting businesses that has ever been discovered in the recent past, said an ED source knowledgeable about the case. The confiscated gold has been taken to be officially valued and kept in the custody of the government until further action.
The ED had previously conducted raids in Bengaluru, Hyderabad, and Goa, looting cash, luxury cars, and digital equipment that were suspected of having a record of betting transactions. Some of them, such as software developers and payment intermediaries, are also in the spotlight as, allegedly, they created and sustained the digital framework of the betting network.
The case is now a part of an increasing number of online betting searches in India, which shows that people are using online platforms to ferry illegal funds. The government has cautioned the people against engaging in unscrupulous betting platforms, with most of them being associated with offshore organisations that are out of the reach of Indian laws.
More arrests will likely be made as the investigation progresses. The ED has shown that it will liaise with cybercrime departments and financial intelligence agencies to destroy the whole network.
The capture of 50 crore of gold is not only a reminder of the extent of illegal online betting in India, but it is also indicative of the fact that the digital economy is being used at a very fast pace to launder money. Having placed Veerendra and his associates in the microscope, the ED will be in the process of revealing the darker side of the nexus between online gambling, cryptocurrency, and money laundering.
Source: The Times of India
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