Kochi: Coordinated raids by the Directorate of Enforcement (ED) sleuths at multiple locations in Kerala had revealed a fraudulent forex trading scheme carried out by the Cyprus-registered forex trading platform Zara FX.

According to an ED press release, the firm was found operating illegally in India by collecting deposits through mule accounts and promising high returns to investors. (Mule accounts refer to the personal bank accounts that criminals use to launder money.)

ED said the searches were part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA), 2002, against Zara. During the searches, multiple mobile devices and a hard disk were seized, along with bank accounts having around ₹3.9 crore were frozen.

ED said it initiated an investigation based on FIRs registered against the CEO of Zara FX, Jamsheer TV, and other prominent persons for money laundering and fraudulent forex trading. Kerala Police had filed cases for cheating and criminal conspiracy under relevant sections of the IPC. The ED's probe focuses on the laundering of proceeds of crime generated through these illegal activities," the ED release said.

"Preliminary investigation has revealed that the syndicate was operating through unregulated online trading platforms and collecting deposits via a network of mule accounts. Investors were lured with the promise of unusually high returns, and the collected funds were routed through multiple layers of bank and virtual accounts to obscure their origin," ED said. The anti-money laundering agency said the company's part of the funds were allegedly diverted for speculative forex trading abroad, while the remaining amounts were siphoned off for personal gains.

"The investigation is continuing to identify the full extent of the network, trace additional assets," the ED said.