Bengaluru, Dec 22 (IANS) The Enforcement Directorate’s (ED) Bengaluru Zonal Office has conducted search operations late last week under the Prevention of Money Laundering Act (PMLA), 2002, at 21 premises spread across Karnataka, Maharashtra and Delhi at the residential and office premises of the accused persons and their associates under PMLA in the case of “4th Bloc Consultants and others” in connection with large scale organised financial fraud involving crypto currency-based investment platforms, the official statement said on Monday.
During the search operations, movable and immovable properties in India and abroad and few crypto wallets addresses were identified.
The search operation was conducted after preliminary investigation conducted on the basis of the FIR and information shared by Karnataka Police, alleging large scale organised financial fraud involving crypto currency (virtual assets)-based investment platforms operated by the accused persons targeting foreign nationals as well as Indian citizens and collecting funds in the guise of investment majority in the form of crypto currency through the websites designed by the accused, the ED statement added.
During the search operation, the modus operandi used by the accused has been unearthed, the statement said.
The accused created fake cryptocurrency investment platforms that imitates genuine investment platforms advertising “astronomical returns”.
They targetted gullible investors from India and abroad promising quick returns, the ED said in a statement.
The accused also used the photos of reputed crypto expert, famous personalities without consent for promotions.
Initial investors were paid some returns to gain trust and attract more investors like a classic multi-level marketing scheme, the ED added in the statement
The accused offered referral bonuses and used social media platforms such as Facebook, Instagram, WhatsApp, Telegram etc, to market their schemes and increase the scale of the fraud.
The funds were transferred to India through hawala routes, accommodation entries and also through Peer to Peer (P2P) crypto transfer to others.
The proceeds of crimes were utilised to create assets in India and abroad.
Some of the properties made from the proceeds of the crime were identified by the ED sleuths during proceedings.
The search operation has also helped in identification of few crypto wallets addresses of the accused persons which has been used to receive and further utilise the proceeds of the crime, the ED said.
It is revealed during the search operations that most of the accused are maintaining undisclosed foreign bank accounts to launder proceeds of the crime.
The ED has taken up further probe in the matter.
–IANS
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