The Enforcement Directorate (ED) has made its largest-ever seizure of cryptocurrency, confiscating virtual digital assets worth Rs 1,646 crore as part of an ongoing money laundering investigation linked to a fraudulent investment scheme. The probe, which is still underway, uncovered a network that allegedly duped investors by promoting unregistered securities in the form of cryptocurrency investments.
According to official sources, the investigation revealed that many transactions were conducted through the dark web to obscure their traceability. The ED tracked multiple web wallets and utilized ground intelligence to pinpoint the locations of digital devices storing the illicitly acquired cryptocurrencies.
Sources confirmed that the confiscated digital assets have been secured in a specialized crypto wallet maintained by the agency. The crackdown marks a significant milestone in the agency’s efforts to curb financial crimes involving virtual assets.
The investigation has also uncovered the operations of BitConnect, an unincorporated organization that allegedly built an extensive global network of promoters. According to findings, BitConnect enticed investors with promises of lucrative returns and rewarded its promoters with commissions for securing deposits.
The fraudulent scheme lured investors by marketing a purported proprietary tool known as the “volatility software trading bot.” This bot, the promoters claimed, could generate returns as high as 40% per month using investor funds. However, the ED’s probe suggests that these promises were baseless, and the platform operated as a high-stakes Ponzi scheme.
The latest developments in this case underscore the growing regulatory scrutiny surrounding cryptocurrency-related financial fraud. With the investigation still in progress, authorities are expected to intensify their crackdown on similar fraudulent schemes in the digital asset space.
