ED Arrests Key Agent Navab Hassan in QFX Ponzi Scam Case

The Enforcement Directorate (ED) has arrested Navab Hassan, an agent allegedly involved in the QFX Ponzi scheme, which was exposed in January.  In February, the ED froze ₹ 1.7 billion in connection with the scam.

Hassan has been remanded to nine days of ED custody following his arrest. According to the agency, Hassan played a “pivotal role” in misleading investors and mobilizing public deposits, which were laundered through the QFX scam, also known as the YFX, BotBro, BotAlpha, Crossalpha, and Minecrypto scam.

This marks ED’s second arrest over the past week. On September 17, the ED apprehended Harinder Pal Singh, a top agent who identified Hassan as the leading operative in the western Uttar Pradesh region.

The scam promised monthly returns of 5–6% via AI-based forex trading. However, no actual trading occurred. Investor dashboards displayed fictitious balances while new deposits were used to pay earlier investors—a classic Ponzi structure.

Funds were collected through payment aggregators and virtual currencies like USDT. After initial payouts, investor accounts were deleted, and proceeds were allegedly diverted to the UAE for property purchases and luxury spending linked to close associates of the main accused.

Hassan, designated as a “Blue Diamond Executive,” allegedly built a network of over 10,000 investors. He coordinated with Dubai-based mastermind Lavish Chaudhary, alias Nawab, and his associates, and frequently traveled to the UAE to meet them. The ED said Hassan was planning another Dubai visit before his arrest. Chaudhary remains absconding, with a Red Corner Notice issued against him by Interpol.

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