(Image source from: PTI)
The Enforcement Directorate announced on Thursday that assets worth Rs 11.14 crore belonging to former Indian cricketers Suresh Raina and Shikhar Dhawan have been seized in connection with the 1xBet money laundering investigation. 1xBet is a well-known online betting site that has been in business for 18 years. The Enforcement Directorate (ED) is looking into its activities as part of a larger inquiry targeting such businesses due to allegations of fraud amounting to crores and tax dodging. The ED has stated that it has temporarily taken control of Suresh Raina and Shikhar Dhawan's movable and immovable assets under the Prevention of Money Laundering Act (PMLA), 2002. They reported that this includes mutual funds worth Rs 6.64 crore registered in Raina’s name and a property worth Rs 4.5 crore in Dhawan’s name. They noted that searches were performed at four payment gateways, uncovering a money laundering trail of Rs 1,000 crore.
According to the ED, the investigation has shown that 1xBet and its related brand 1xBat, 1xBat Sporting Lines, were involved in encouraging and enabling illegal online betting and gambling across India. They stated that both Raina and Dhawan were aware that they were signing contracts with foreign companies to promote 1xBet through these related brands. These promotions were financially compensated through foreign entities to hide the illegal source of the funds, which are tied to profits from unlawful betting operations. The central agency emphasized that 1xBet was operating in India without proper authorization, using related branding and advertisements to reach Indian customers via social media, online videos, and print media. The endorsement payments were organized through complex transactions with foreign middlemen to conceal the illicit source of funds.
The ED highlighted that 1xBet was enabling betting and gambling for Indian users by gathering money through numerous ‘mule accounts’. They mentioned that over 6,000 such accounts were utilized for making deposits.
Funds collected from users in these accounts were funneled through various payment gateways to hide their source, said the ED. Merchants were signed up on these gateways without proper KYC examinations. Upon reviewing profiles of these merchants, it was discovered that their stated business activities did not align with their actual transaction habits, indicating money laundering of over Rs 1000 crore. Searches were conducted based on these discoveries, leading to the collection of important evidence. Additionally, the ED mentioned that more than 60 bank accounts linked to these payment gateways have been frozen, with over Rs 4 crore still held. The investigation is continuing.
It also suggested that people stay watchful and take care by not taking part in, promoting, or putting money into online betting or gambling websites. The statement explained that illegal betting and gambling not only hurt the economy but also aid in money laundering and support illegal activities. It also urged individuals to report any questionable transactions or ads for such websites.
Advisory by the ED:
Do not let others use your personal or business bank accounts, debit cards, UPI IDs, or payment wallets to receive or send money from sources that you do not know.
Do not follow advertisements or click on links on social media that promise big rewards, betting deals, or "easy money" programs. These links usually lead to illegal gambling websites or scams.
Steer clear of downloading apps or joining Telegram/WhatsApp groups that advertise online betting or gambling.
Anyone who knowingly helps or lets their account be used for these kinds of actions may face legal action under the PMLA, which can lead to up to seven years in prison and seizure of assets gained from these illegal activities.
If you think your account has been misused, contact your bank and local law enforcement right away.
