The Indian Enforcement Directorate (ED) has conducted simultaneous raids at 21 locations across Karnataka, Maharashtra, and Delhi to expand the investigation into a large-scale crypto fraud scheme that is believed to have been operating for nearly a decade.
This search occurred on December 18 under the Prevention of Money Laundering Act (PMLA), targeting residences and workplaces related to 4th Bloc Consultants and the affiliated network of such companies.
The largest crypto seizure in India?
Authorities stated that this group operated a fake crypto investment platform that deceived investors both in India and abroad by promising unusually high returns.
According to ED, this case originated from police reports and intelligence received from the Karnataka state police.
Investigators claim that the suspects created a professional-looking website that closely mimicked a global crypto trading platform, including the dashboard, account balance, and transaction history.
However, most of these platforms are just illusions, with officials stating that there is hardly any real trading taking place.
In contrast, the crypto scammers circulated investors' money in a structure similar to a classic Ponzi scheme or multi-level marketing.
To build credibility, the operators were accused of using photos of crypto experts and famous public figures without permission.
Initially, investors would receive small returns to build trust, after which each would be persuaded to invest larger amounts and invite others to join through referral bonuses.
As the scheme expanded, promoters heavily relied on social media platforms, including Facebook, Instagram, WhatsApp, and Telegram, to attract victims.
ED believes that this network targets investors both in India and abroad.
Investigators stated that the money obtained from crimes was laundered through numerous crypto wallets, undisclosed foreign bank accounts, nominee companies, and hawala channels.
The scammers also moved money through peer-to-peer crypto transfers before converting it to cash or depositing it into bank accounts.
During the raids, ED identified several crypto wallet addresses believed to be controlled by the suspects, including movable assets and land in India and abroad acquired from illegal funds.
Officials noted that several foreign entities were used to obscure the financial trails as well.
It is noteworthy that officials believe this operation began as early as 2015, with these con artists continuously developing methods to avoid detection as crypto market scrutiny increased.
The investigation is still ongoing.