ED Arrests Armstrong Exchange Founder Sagar Dash in Betting Probe

India's Enforcement Directorate (ED) has arrested Armstrong Exchange founder Sagar Dash in connection with an alleged online gaming and betting scam. A special court in Mumbai has remanded him to ED custody for three days.

According to the agency, Dash was arrested on October 27 under the Prevention of Money Laundering Act (PMLA), 2002. The probe began after three FIRs were filed over online betting and cyber fraud linked to All Panel Exchange (APX), prompting the ED to examine APX's operations and related financial flows.

Alleged network of mule accounts

The ED says it uncovered a network of mule accounts and shell entities used to route proceeds of crime worth hundreds of crores. It alleges that Dash used fabricated documents and KYC details for an account held for Armstrong Exchange Pvt Ltd, a company he set up, with Nagarbhavi Credit Cooperative Society in order to open a cryptocurrency account.

The agency claims hundreds of crores passed through the cooperative society's bank account, a substantial portion tied to illegal gaming and betting platforms. Funds were allegedly first moved through several mule accounts at Jubilee Hills Mercantile Cooperative Bank in Hyderabad, then to shell entities, and finally in large amounts to the nodal account at the Bengaluru society.

Searches, freezes and a second arrest

Earlier searches in Pune, Mumbai, Bengaluru, Hyderabad, Surat and Mehsana led to the seizure of incriminating documents and the freezing of nearly ₹9 crore across multiple bank accounts. The ED also arrested Ram U Ramdhani, CEO of Edsom Fintech Pvt Ltd, in the same case.

The case is part of a wider crackdown. Days ago the agency opened investigations into alleged FEMA violations involving crypto platforms Mudrex and Saber.money, as well as DeFi protocol Instadapp and its Fluid platform, over alleged unauthorised cross-border transfers above ₹4,940 crore. In June it searched premises linked to Transak, Carret, Xpat, Onramp.money and Onmeta.

The ED says its investigation continues, with the aim of tracing the full financial network and identifying other entities involved in routing the proceeds.