Armstrong Exchange founder arrested over online betting fraud allegations
Indian authorities have arrested Sagar Dash, founder of Armstrong Exchange, following investigations into an alleged money laundering and online betting scheme.
The Enforcement Directorate (ED) of India arrested Sagar Dash, the founder of Armstrong Exchange, on October 27 under the Prevention of Money Laundering Act. A special court in Mumbai has remanded Dash to three days of agency custody to facilitate further investigation.
Investigators allege that Dash operated a sophisticated network of shell companies and mule bank accounts to process hundreds of crores in proceeds from illicit online gaming platforms. According to the ED, funds were routed through Nagarbhavi Credit Cooperative Society and Jubilee Hills Mercantile Cooperative Bank using falsified KYC documentation to obscure the origin of the capital.
The probe originated from reports linked to the All Panel Exchange (APX) platform. Previous coordinated raids across India led to the freezing of approximately ₹9 Cr in assets and the seizure of financial records. This arrest represents a significant step in the regulator's ongoing crackdown on financial irregularities within the domestic crypto and fintech sectors, which have recently faced increased scrutiny regarding unauthorized cross-border transactions.