The Directorate of Enforcement (ED) conducted searches at 21 premises in Delhi, Karnataka and Maharashtra on Thursday in connection with a cryptocurrency scam case allegedly orchestrated by 4th Bloc Consultants and others, an official statement stated.
The agency conducted search operations under the Prevention of Money Laundering Act after preliminary investigation conducted on the basis a case registered by the Karnataka police. It was alleged that the accused committed financial fraud involving cryptocurrency-based investment platforms targeting foreign nationals as well as Indian citizens.
ED on the fraudsters’ MO
The accused allegedly collected funds in the guise of investment, majorly in the form of cryptocurrency through the websites designed by them, the agency said.
According to the ED, the accused targeted investors promising quick returns. They used the photos of crypto experts without consent and also used social media platforms such as Facebook, WhatsApp, Instagram and Telegram offering referral bonuses to expand their network.
Long history of crime
The ED stated that the fraudulent activities date back to 2015, with proceeds of crime generated in cryptocurrency being either directly used for further crypto transactions or converted into cash and bank balances through various platforms.
The ED conducted searches at the residential and office premises of the accused persons and their associates. During the searches, the agency identified several immovable properties in India and abroad acquired with the laundered funds, as well as multiple cryptocurrency wallet addresses linked to the accused. The search also led to the discovery of undisclosed foreign bank accounts and shell entities used to launder the proceeds, the agency said.