Rs 1,646 Crore in Cryptocurrency Seized by ED in India’s Biggest Crypto Fraud Crackdown
The Enforcement Directorate (ED) has the first-ever cryptocurrency seizure worth Rs 1,646 crore. This arrest is part of a much larger inquiry into the alleged fraud of an investment scheme. The scheme unlawfully promised returns through a cryptocurrency lending scheme dubbed BitConnect.
In addition to the cryptocurrency, the ED also snapped Rs 3.50 lakh in cash, luxury SUVs, and several digital devices during its recent raids. These revelations follow some investigations carried out under the Prevention of Money Laundering Act (PMLA), aimed at tracing illegal transactions related to crypto investments.
Investigating the BitConnect Fraud Scheme
The money laundering matter has its roots in a fraud offense carried out between November 2016 and January 2018. The operation involved an unlicensed investment online platform known as BitConnect. As per the ED’s findings, BitConnect duped investors by assuring them of earning lucrative returns using a proprietary “volatility software trading bot.”
This simple bot was promised to result in profits of up to 40% per month. However, the online platform never traded and the promised profits were non-existent. Instead, the service is used by channeling money to recover digital wallets that were controlled by the attackers.
Dark Web Transactions and Seizing Virtual Assets
The ED’s investigation into the case found out how the dark web is being used extensively to be secret. By analyzing with great detail various crypto wallets, the agency determined the source of the funding and pinpointed crucial locations where the digital currencies were kept. The ED also confiscated cryptocurrency worth Rs 1,646 cr, putting it in an ED-provided wallet.
This is the biggest ever such cryptocurrency seizure by the ED. The move is part of an ongoing mission to fight illicit money and separate scams in the digital asset field.
International Involvement and Ongoing Investigations
The fraud plot additionally had foreign nationals heavily investing in BitConnect. The prime accused involved in the scam is being investigated by the authorities in the US. Earlier, assets worth Rs 489 crore were already attached by ED, indicating its continued efforts to curb illegal cryptocurrency dealings.
The case remains ongoing, and further searches and seizures are likely anticipated as the case continues. The ED’s activity demonstrates its dedication to focus on illegal financial crimes associated with cryptocurrencies.
