New Delhi, March 06, 2024: The Enforcement Directorate (ED) in New Delhi has filed a charge-sheet against 299 entities, including 10 individuals of Chinese origin, under the anti-money laundering law. This action is part of an investigation into an alleged scam that duped investors in the name of mining cryptocurrencies like Bitcoins.
The prosecution complaint was filed under the Prevention of Money Laundering Act (PMLA), and a special court in Dimapur, Nagaland, acknowledged it on Tuesday. The accused include 76 Chinese-controlled entities with 10 directors of Chinese origin and two entities controlled by other foreign nationals.
The ED’s case originates from an FIR filed by the Cyber Crimes Unit of the Kohima Police. The police had charged several individuals under the Indian Penal Code and the Information Technology Act for allegedly deceiving investors with promises of high returns from Bitcoin and other cryptocurrency mining.
The accused reportedly used a mobile app named “HPZ Token” to defraud the investors. The ED stated that various “shell entities” with “dummy” directors opened bank accounts and merchant IDs for “layering” the proceeds of the crime. These funds were illicitly obtained from illegal online gaming, betting, and investments for Bitcoin mining.
Investors were promised daily returns of ₹ 4,000 for three months on an investment of ₹ 57,000. However, the money was paid only once, after which the accused solicited fresh funds from the investors.
The ED conducted nationwide searches in this case, resulting in the seizure of immovable assets and deposits worth ₹ 455 crore. This case serves as a stark reminder of the potential risks associated with cryptocurrency investments.
+ There are no comments
Add yours