The Enforcement Directorate arrested Armstrong Exchange Pvt Ltd founder Sagar Dash for allegedly laundering hundreds of crores through mule accounts, shell entities and cryptocurrency tied to an illegal betting platform, All Panel Exchange. Dash was arrested on October 27 under the Prevention of Money Laundering Act (PMLA), 2002, as part of an ongoing probe that also covers alleged cyber fraud linked to online gaming and betting operations. The ED investigation began based on three FIRs involving complainants who alleged they were cheated out of crores of rupees. Investigators said the proceeds of crime generated through illegal betting and gaming were routed through multiple mule bank accounts at Jubilee Hills Mercantile Cooperative Bank in Hyderabad. From there, the money was transferred to shell entities, and investigators claim large amounts were then moved to the nodal account of Nagarbhavi Credit Cooperative Society in Bengaluru, maintained on behalf of Armstrong Exchange. The agency alleges Dash used KYC details and fabricated documents of Nagarbhavi Credit Cooperative Society to open a cryptocurrency account. Hundreds of crores were allegedly routed through that cryptocurrency channel, and the funds were said to facilitate payouts to the bank accounts of retail individuals. ED officials also said a substantial portion of the money was linked to proceeds generated through betting platforms that allegedly defrauded victims through cyber frauds. The probe is now focused on Dash’s alleged role and the involvement of other people connected to the financial network. A week before the arrest, the ED carried out searches across multiple locations in Mumbai, Pune, Bengaluru, Hyderabad, Surat and Mehsana in Gujarat. Searches resulted in the seizure of incriminating documents and the freezing of around Rs 9 crore in multiple bank accounts. Investigators previously arrested Ram U Ramdhani, CEO of Edsom Fintech Pvt Ltd, in connection with the case. Dash remains under ED custody following his arrest.