Ahmedabad: The Directorate of Enforcement (ED), Ahmedabad Zonal Office, conducted search operations at 21 locations in Delhi, Mumbai, and Pune as part of the ongoing probe into the case of Magicwin, which was involved in the illegal broadcasting of cricket Men's T20 World Cup matches and various online betting activities, the ED stated.
Digital devices seized
According to the ED's press release issued on Tuesday, the searches were conducted on December 10 and 12 under the provisions of the Prevention of Money Laundering Act (PMLA). During the operations, bank funds amounting to approximately Rs 30 lakh were frozen, and various incriminating documents and digital devices were seized, reports Dynamite News correspondent.
The ED initiated its investigation based on an FIR registered by the Cyber Crime Police, Ahmedabad, against Magicwin and others.
EDs investigation
The ED's investigation revealed that Magicwin is a betting website disguised as a gaming platform, actually owned by Pakistani nationals. The operations of this website are largely managed by Indian nationals working or settled in Dubai.
It was further discovered that the betting games featured on the website were originally played in the Philippines and other countries where betting activities are legal. However, these games were re-telecast on the Magicwin website using copied APIs from the original games.
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Betting activities
The betting activities, such as deposits, placing bets, and withdrawals, are controlled by the owners of Magicwin.
The ED investigation also found that the money deposited into the bank accounts displayed on the Magicwin website by players/bettors was routed through multiple layers of shell/mule bank accounts.
Hawala channels
The profits earned by the owners were then invested in crypto assets, withdrawn in cash, or transferred to Dubai through hawala channels.
Additionally, the winnings of players/bettors were transferred to their respective bank accounts through merchant accounts of various shell companies maintained with payment gateways or aggregators. The winnings were also transferred via Domestic Money Transfer (DMT).
Social media accounts
During the investigation, it was revealed that Magicwin hosted a launch party in India, attended and endorsed by several Bollywood celebrities. These celebrities participated in video and photo shoots for Magicwin advertisements and promoted the platform on their social media accounts.
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Advertisements were also placed on out-of-home (OOH) hoardings in various parts of India, including Gujarat and Maharashtra. The investigation revealed that the profits generated by this betting website amount to more than 50% of the total deposits made by players.
To date, the ED Ahmedabad has conducted 68 searches in this case, seizing incriminating documents and digital devices.
The total seizure/freezing in the case currently stands at approximately Rs 3.55 crore. Further investigation is ongoing.
