The scheme was run through three Bengaluru-based firms. In this, people were lured with returns of 3-5 percent per day.
The Enforcement Directorate (ED) has caught a case of fraud through a crypto-related scheme in Kerala. In this, a businessman from Kerala has been arrested, who is accused of cheating more than 900 people to the tune of Rs 1,200 crore. ED says that the accused is not cooperating in the investigation and he is avoiding giving correct answers in the interrogation.
The ED said that Abdul Ghafoor, the chief stockist of ‘Morris Coin cryptocurrency’, was detained on March 24. He was produced in the court and has been sent to ED custody till March 31. The ED said that Ghafoor, one of the directors of Stoxglobal Brokers, had an active role in siphoning off the crime proceeds. The money laundering case filed by the ED is related to the FIR of the Kerala Police against Nishad, the main accused in the case. The ED alleges that Nishad has cheated many people through a Ponzi scheme. This scheme was run through his three firms in Bangalore. In this, people were lured with returns of 3-5 per cent per day. The police complaint states that more than 900 people have been cheated to the tune of Rs 1,200 crore.
Investigation has revealed that Nishad had made those people pin stockists who had invested at least Rs 10 lakh in this scheme. Nishad had promised stockists a commission of 5 per cent on the investment. The stockists had inducted a large number of new members in an illegal scheme. This scheme was being run under the guise of multilevel marketing.
Earlier, the ED had told that deposits taken from people were illegal and there was no permission from regulatory agencies for the same. The ED had attached assets worth Rs 36.72 crore of Nishad and his associates. Cases of fraud through cryptocurrencies in recent monthshave grown. In these cases, by giving wrong information to the people, their money is invested in some scheme. It is also difficult to trace the amount of crime in such cases as it is often transferred abroad.