ED Widens QFX Scam Probe, Seizes ₹9.4 Million in Western UP Network Sweep

India’s Enforcement Directorate (ED) on Wednesday launched a sweeping crackdown on a money laundering network tied to absconding QFX forex scam mastermind Lavish Chaudhary, intensifying its probe across western Uttar Pradesh

In coordinated raids, ED officials searched the residences of three of Chaudhary’s close associates, seizing ₹9.4 million in cash, key bank records, incriminating documents, and digital devices believed to contain evidence of fraud and money laundering.

Chaudhary, originally from Ghasipura village in Muzaffarnagar, is the prime accused in a ₹2.1 billion forex trading scam that defrauded thousands of investors nationwide. Operating under the alias Nawab Ali, he founded QFX Trade Ltd and other shell entities, luring victims—ranging from farmers to middle-class families—with promises of 5–6% monthly returns.

Following an FIR against QFX, Chaudhary repeatedly rebranded his operations to evade scrutiny, including YFX, BotBro, TLC Coin, and Yorker FX. His network spanned West Uttar Pradesh, Haryana, and Himachal Pradesh.

Chaudhary fled to Dubai, where he allegedly continues to orchestrate operations remotely. He uses lavish weddings and social events in the UAE to recruit agents and attract new investors. Interpol has issued a Red Corner Notice against him, restricting his movements and preventing his re-entry into India.

In February 2025, the ED froze ₹1.7 billion in bank deposits linked to the scam. Last month, the key agent Navab Hassan, responsible for misleading investors and mobilizing public deposits, was arrested. The latest raids in Muzaffarnagar mark an escalation in the agency’s investigation.

In October 2024, the Reserve Bank of India added 13 unauthorized forex trading platforms to its Alert List, including QFX.

The ED is now tracking the financial trail of 25 additional agents believed to be part of Chaudhary’s network. Preliminary findings suggest funds were funneled through shell companies, with portions diverted overseas to support Chaudhary’s luxurious lifestyle in Dubai.

Investigators have also begun scrutinizing passport and visa records of Chaudhary and his associates, suspecting deep international links behind the fraud.