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India’s Enforcement Directorate (ED) has conducted coordinated raids at 21 locations in Karnataka, Maharashtra and Delhi as part of a wide-ranging investigation into a massive cryptocurrency scam that has allegedly been going on for nearly a decade.
The inspections were conducted on December 18 under the Prevention of Money Laundering Act (PMLA). The residential building and offices associated with the consulting company in the fourth block and its partners were targeted.
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Authorities say the group ran Fake cryptocurrency investment platforms He duped Indian and foreign investors by promising unusually high returns.
According to the section The first investigationsThe case arose out of a police report and intelligence inputs from the Karnataka State Police.
Investigators say the defendant created professional-looking websites that closely resembled legitimate global cryptocurrency trading platforms, complete with dashboards, account balances and transaction histories.
However, these pillars were mainly facade. Officials say there was little or no real business activity.
Instead, cryptocurrency scammers recycle investors’ money in a structure that resembles a classic Ponzi or multi-level marketing scheme.
To build credibility, The operators allegedly abused the image Comments and famous public figures in the cryptocurrency space without consent.
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Early investors received small returns to gain confidence. Later, they were encouraged to invest larger amounts and attract new participants through referral bonuses.
As the program expanded, promoters relied heavily on social media platforms. This included Facebook, Instagram, WhatsApp and Telegram to lure victims.
The Department of the environment believes that the network It is aimed at investors in India and abroad.
Investigators say the proceeds of the crime were laundered through a complex network of cryptocurrency wallets, undeclared foreign bank accounts, shell companies, and hawala channels.
Fraudsters also transferred funds via peer-to-peer cryptocurrency transfers before converting them to cash or storing them in bank accounts.
During the raids, the Department of Investigations identified several Cryptocurrency wallet addresses The accused controls, in addition to the movable and immovable assets acquired in India and abroad with illegal money.
The authorities also pointed to several foreign entities used to hide the money trail.
It should be noted that officials believe that the operation dates back to at least 2015. Scammers have evolved over time to avoid detection as the scrutiny of cryptocurrency markets increases.
The investigation is still ongoing.
