Cryptocurrency scam worth 1200 crores in India

Thiruvananthapuram: On Wednesday, Enforcement Directorate officers said that at least 900 people were defrauded of over Rs 1,200 crore after investing in an "initial coin offering" issued by a Kerala man for a non-existent cryptocurrency.

According to ED sources, investments in bogus cryptocurrencies were made in 2020, primarily during the lockdown.

According to officials, the victims purchased "Morris Coin," which is listed on the Franc Platform cryptocurrency exchange in Coimbatore, in a manner like an initial public offering.

A source in the ED said to The Indian Express, "Ten Morris coins were valued at Rs 15,000 with a lock-in period of 300 days. The currency was fake. The investors were given an e-wallet and told that the coin value would boom when traded in the exchange."

"But the promoters of the coin siphoned out the money and illegally invested in immovable properties in Kerala, Tamil Nadu and Karnataka, particularly in real estate without showing any source of income," the source further added.

The Enforcement Directorate conducted searches at 11 locations in Kerala, Tamil Nadu, Karnataka, and Delhi for the last few days. Searches were also conducted in places including the Bengaluru-based Long Rich Technologies and Morris Trading Solutions.

Unni Mukundan Films Pvt. Ltd, a company founded by Malayalam actor Unni Mukundan, and Nextel Group, were among the locations that were searched by the ED, the IE reported.

Nishad aged 31, of Pookkottumpadam village in Malappuram district, has been identified as the fraud's mastermind by the ED. Officials from the ED stated the actor had ties to Nishad.

After police in Kannur and Malappuram districts filed various complaints against Nishad and others under Section 420 (Cheating) of the Indian Penal Code (IPC), the Directorate took up the case last year.

The alleged criminals were also involved in a Ponzi scheme. After the company stopped paying the promised profits, many of the investors went to the police and complained, IE reported.

Nishad had fled the country after being granted anticipatory bail in the police charges by the Kerala High Court.

[New Delhi : A fake cryptocurrency scam has come to the fore in the country. In the name of a new cryptocurrency, 1200 crore rupees have been cheated from about 900 people. Enforcement Directorate has disclosed this. In connection with this scam, the Enforcement Directorate (ED) has raided many places in the country. A person from Kerala is believed to be its mastermind who has fled the country. There are cases of money laundering going on against him as well.

The Enforcement Directorate has also raided the premises of a South film actor. However, the actor has denied having any connection to these raids with the cryptocurrency scam. The scamsters have carried out this scam under the guise of Initial Coin Offering (IOC). Most of the cheated people had bought the fake coin “Morris Coin”, during the lockdown in 2020.]

Execute such a scam

According to a news report published in the English newspaper Indian Express quoting Enforcement Directorate sources, the fake cryptocurrency “Morris Coin” was listed in 2020 along with the Coimbatore-based cryptocurrency exchange Franc Exchange. It was presented to the public in the same way as an IPO is offered. The price of 10 Morris coins was kept at Rs 15,000 and its lock-in period was 300 days. An e-wallet was also given to the investor. The promoter of this fake cryptocurrency has lured the investors that it will soon become expensive.

Initially, companies like Long Rich Technologies, Long Rich Trading and Long Rich Global initially attracted investors by telling them that they have an online education app. It later introduced Morris Coin as its own cryptocurrency and claimed it was listed on a cryptocurrency exchange. Apart from this, he also ran some quick money doubling schemes and took money from investors.

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