India: ED freezes millions in mule account network
Raids uncover 1,200 mule credit cards and a complex layering network tied to the Parimatch betting app.
Key points:
– Enforcement Directorate freezes Rs 110 crore ($12.6m) and seizes 1,200 mule credit cards
– Raids tied to Parimatch betting app, accused of laundering over Rs 3,000 crore in a year
– Funds routed through mule accounts, hawala operators and cryptocurrency purchases
The Enforcement Directorate (ED) has frozen Rs 110 crore held in mule accounts and seized 1,200 mule credit cards following nationwide raids linked to the Parimatch online gaming and betting app, The Times of India reported. The operation covered 17 locations in Mumbai, Delhi, Noida, Jaipur, Surat, Madurai, Kanpur and Hyderabad.
Investigators allege that Parimatch, based in Cyprus, conducted illegal betting operations in India by deceiving users with promises of high returns. The ED said the platform generated more than Rs 3,000 crore (US$360m) in a year, using aggressive marketing, celebrity endorsements and surrogate advertising through Indian entities branded as Parimatch Sports and Parimatch News.
The probe revealed a sophisticated network of money laundering strategies. In Tamil Nadu, user deposits were withdrawn in cash, passed to hawala operators and converted into USDT cryptocurrency through UK-based virtual wallets registered under mule crypto accounts. In western India, domestic money transfer agents allegedly funnelled funds through mule accounts and payments made using mule credit cards.
Authorities discovered that APIs supplied by certain technology service providers allowed Parimatch agents to open mule accounts under e-commerce and payment company names. Funds collected via UPI transfers were then layered and disguised as refunds, chargebacks, vendor payments and other transactions to mask the true source.
Good to know: The ED found rejected payment aggregators had been providing services to Parimatch under the guise of technology service providers
The ED confirmed it is continuing to trace the fund flows and identify additional entities that facilitated Parimatch’s illegal operations, with further action expected against both domestic and international networks connected to the scheme.
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