India’s ED Uncovers Network of Fake Crypto Sites in Laundering Probe
India’s Enforcement Directorate (ED) launched coordinated raids across three states after uncovering what it says is a network of fake cryptocurrency websites allegedly used to launder proceeds from fraud and other illicit activity. The operation, reported in late December 2025, forms part of an intensified crackdown by financial crime authorities targeting platforms and intermediaries that facilitate anonymous or unverified crypto transactions.
The development matters because it underscores escalating regulatory scrutiny and the reputational risk facing legitimate exchanges and P2P services. For users, it’s a reminder to verify platforms and insist on robust KYC/AML protections; for businesses, it could trigger tighter compliance requirements and enforcement actions. The ED investigation is ongoing, and authorities are examining transaction records and digital infrastructure to trace funds and identify operators responsible for the fake sites.