The Enforcement Directorate (ED) conducted searches in connection with a case involving KC Veerendra, a Congress MLA from the Chitradurga constituency in Karnataka, and others accused of cheating the public through an illegal online betting operation. As part of the investigation, the ED seized 40 kilograms of 24-carat gold bullion worth ₹50.33 crore from two lockers in Challakere, Karnataka, during search operations held on October 9.
The operation was carried out by the ED’s Bengaluru Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002. With this latest seizure, the total value of assets recovered in the case has now crossed ₹150 crore. This includes 21 kg of gold bars, cash, gold and silver jewellery, luxury vehicles, and bank accounts that had been previously seized.
ED conducted searches in the K C Veerendra illegal online betting case, seizing 40 kg gold worth Rs. 50.33 crore from Challekere lockers. Total assets seized so far exceed Rs. 150 crore. Investigation revealed Veerendra, an MLA, and associates ran betting sites like King567,… pic.twitter.com/Yj3i9vD2JK
— IANS (@ians_india) October 9, 2025
According to the ED, KC Veerendra, along with his family members and close associates, was running multiple illegal online betting platforms, including popular websites like King567 and Raja567. These platforms were used to cheat people across the country by collecting money under the guise of online betting.
The money collected from users was moved through payment gateways such as FonePaisa and then laundered using mule accounts. These accounts were created using the names of individuals who were paid small amounts to allow their details to be used. These mule accounts were sourced from different parts of India through intermediaries. The ED has also found links between this betting network and cybercrimes, as many of these accounts were involved in other online scams.
The total estimated turnover of these betting operations is said to be over ₹2,000 crore, making it one of the largest cases of online betting scams in the country. The money earned through this illegal business was used by Veerendra and his team for various high-end expenses. These include international travel, visa arrangements, and hospitality services worth crores of rupees.
In addition, funds were also used to cover costs for marketing, bulk SMS campaigns, platform hosting, and Search Engine Optimization (SEO), all of which helped promote the illegal websites while hiding the real source of money. These payments were also made through mule accounts to make it harder for investigators to trace the money trail.
KC Veerendra was arrested in August 2025 and is currently in judicial custody. The ED stated that the recent searches were part of its continued efforts to track the Proceeds of Crime and expose the full network behind the illegal online betting operations. The agency believes that strong evidence has been collected to show how the funds from the betting platforms were diverted, laundered, and used to fund luxury lifestyles and high-value transactions, all while trying to hide their illegal origin.
