The Enforcement Directorate (ED) on Tuesday said it has attached Rs 1.76 crore of funds deposited in a mule bank account as part of its money laundering investigation linked to the digital arrest of noted Ludhiana-based industrialist SP Oswal.The fund was lying in the bank account of one of the “mule” entity named Mrityunjya Multitrade and this bank account was used for the purposes of receiving and routing proceeds of crime generated from various cyber-crimes like digital arrests, it said in a statement.The Punjab Police in Ludhiana had booked a case into this fraud which the ED took cognisance of.Oswal, the chairman of the Vardhman Group, was put under digital arrest in August, 2023 by fraudsters by impersonating as officers of the Central Bureau of Investigation (CBI) and they “extorted” Rs 7 crore from him, as per the agencies.Probe found that multiple mule bank accounts were utilised for laundering the proceeds of cybercrime and these accounts were opened by inducing “economically vulnerable” individuals with false promises of arranging loans or providing employment.The ED arrested two accused in this case in 2025.Mule accounts are used to funnel illicit funds generated from financial crimes and the actual owner is not its user. Such accounts are created using fake or hired KYC where someone lends their account in lieu of certain commission.Digital arrest is the name given to the cybercrime instance where criminals impersonate police/investigating agency officers and extort money from the victims threatening them with consequences of arrest or prosecution.The government has clarified that digital arrests are not legal in India and people who encounter such a crime should immediately take help of local police and contact the national cybercrime helpline number 1930.