ED arrest fraudster in multi-state scam:Froze bank account with ₹391 crore; cheats people across Himachal, MP, Haryana, UP, and Assam

The Enforcement Directorate (ED) has arrested an agent involved in a large-scale multi-state Ponzi scam that defrauded investors across Himachal Pradesh, Madhya Pradesh, Haryana, Uttar Pradesh, and Assam. The accused, Nawab Hasan from Uttar Pradesh, was taken into custody under the Prevention of Money Laundering Act (PMLA). The PMLA court has sent him to ED custody for nine days to facilitate further investigation. Following the arrest, the ED has frozen assets worth Rs 391 crore linked to the case. Officials said Hasan played a senior role as a field leader under the Dubai-based mastermind, Lavish Chaudhary, also known as “Nawab,” coordinating operations and managing thousands of investors. How the scam operated According to the ED, Hasan and his associates trapped over 10,000 investors with promises of high returns through AI and robot-based foreign exchange trading platforms. The platforms, operating under names like QFX, YFX, BotBro, BotAlpha, CrossAlpha, and MyCrypto, falsely claimed monthly returns of 5–6 percent. Investors were initially shown dashboards indicating fictitious account balances to create the illusion of profitable trading. To further mislead them, Hasan arranged Zoom meetings with the Dubai-based mastermind, making investors believe their funds were actively managed overseas. In reality, no foreign exchange trading took place. New investor funds were used to pay off earlier investors or transferred abroad for personal gains. Payment aggregators and digital currencies like USDT were used to collect funds. Identification documents of investors were removed post-investment, and eventually, payouts were stopped. Previous arrests and investigations This is the second major arrest in connection with the scam this month. On September 17, the ED arrested another agent, Harinder Pal Singh, who identified Hasan as the key agent managing operations in western Uttar Pradesh. The scam is linked to multiple FIRs filed across five states. Investigations revealed that the operation functioned as a pyramid or multi-level marketing fraud, leveraging AI and robot-based forex platforms to mislead investors. Earlier this year, the ED conducted multiple searches and froze funds held in 185 bank accounts connected to fake or shell companies. Authorities said Hasan had built a strong investor base of more than 10,000 individuals and worked closely with Chaudhary to maintain investor confidence. Hasan used to meet Lavish Chaudhary Role of the mastermind Dubai-based Lavish Chaudhary, the mastermind behind the scheme, remains at large. Hasan frequently traveled to Dubai to meet him and participated in Zoom calls to reassure investors. The ED is actively pursuing Chaudhary and his associates to prevent further illegal fund transfers and recover defrauded money. ED’s statement ED officials said Hasan’s arrest is a significant step in dismantling a sophisticated Ponzi network that manipulated thousands of investors across five states. Authorities have urged affected investors to come forward and cooperate with the investigation. This case highlights the growing prevalence of digital and AI-based financial frauds, particularly those leveraging overseas connections to mislead investors. The ED’s action demonstrates a commitment to cracking down on complex multi-state economic crimes and protecting the public from fraudulent schemes.