ED arrests Chinese duo for money laundering through a Chinese app

The Enforcement Directorate (ED) arrested two Chinese citizens accused of money laundering through a Chinese mobile application. This development comes amid a broader crackdown by the agency against such illegal activities.

The arrested individuals, Xiao Ya Mao and Wu Yuanlun, operated a loan application called ‘MyCash App’, which offered loans at extremely low interest rates. However, investigations revealed that this was a front for a larger operation involving data theft, blackmail and extortion.

ED’s Chennai branch had initially registered a case against the duo; that case was later transferred to headquarters due to the agency’s ongoing investigation into similar Chinese practices. Investigations revealed that these apps were used not only to provide loans but also to collect borrowers’ personal data, which was then used to extort money from them.

Both the accused were arrested at a detention center in Tamil Nadu, where they were held after their visas expired. The ED is now planning to produce them in a special court in Delhi to take their custody for further questioning.

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ED’s investigation also uncovered several other Chinese apps involved in similar illegal activities. Some of these apps are Rupee Plus, Hi Paisa, Paisa Karo, Radha Money, Lucky Wallet and Flash Paisa.

The agency’s regional offices in Prayagraj and Lucknow uncovered a network of shell companies and Chinese mobile companies operating behind these apps. These companies are accused of using these platforms to launder money and conduct illegal financial activities.