Enforcement Directorate Confiscates 40 Kg Gold Worth Rs 50 Crore in Karnataka Online Betting Scam
Enforcement Directorate Confiscates 40 Kg Gold Worth Rs 50 Crore in Karnataka Online Betting Scam
The Enforcement Directorate (ED) has confiscated 40 kg of gold (24 carat) worth Rs. 50.33 crore. On October 09, 2025, ED carried out a search operation in connection with an illegal online betting case involving Karnataka MLA KC Veerendra; the gold was received in two lockers in Challakere, Karnataka.
The ED’s Bengaluru Zonal Office conducted searches under the Prevention of Money Laundering Act (PMLA), 2002. In the present confiscation, the agency claimed that they recovered total assets worth more than 150 crores, including the detention of 21 kg of gold bars, cash, gold and silver jewellery, bank accounts, and high-end vehicles.
According to investigation officials, numerous online betting platforms used to be run by Veerendra and his associates, including King567 and Raja567. Using these platforms, they used to defraud users nationwide.
Money gathered from the players was passed through payment services like FonePaisa and then cleaned through mule accounts that intermediaries across the country provided. These links between betting operations and isolated examples of cybercrimes have been unearthed by investigation officials. Sources say these mule accounts were created in the names of individuals in exchange for small amounts.
The betting platforms run by Veerendra are believed to make more than Rs 2,000 crore in total. The ED discovered that Veerendra, his family, and associates used money generated from the online betting network to pay for expensive international travel, visas, and hotel stays. They also spent crores on marketing, bulk SMS, and online promotions through mule accounts to hide that the money was illegal.
The agency said these searches were carried out while the mastermind accused, KC Veerendra, was still in custody. According to the sources, the investigation is ongoing to track the funds generated through illegal online betting activities.