The Enforcement Directorate (ED) has undertaken its largest cryptocurrency seizure to date, confiscating virtual assets worth ₹1,646 crore in connection with an extensive money laundering investigation. The probe centers around a fraudulent investment scheme that lured depositors with promises of high returns on securities investments, according to official sources.
Crackdown on Fraudulent Crypto Investments
The Ahmedabad office of the federal probe agency conducted a fresh round of searches on Saturday, uncovering additional assets linked to the fraudulent scheme. In addition to cryptocurrency holdings, authorities seized ₹13.50 lakh in cash, an SUV, and multiple digital devices. The case involves the ‘BitConnect lending program,’ an unregistered and allegedly deceptive investment scheme.
The investigation, carried out under the Prevention of Money Laundering Act (PMLA), originated from a First Information Report (FIR) filed by the Surat Police crime branch. According to the FIR, the fraud occurred between November 2016 and January 2018, following the demonetisation policy in India.
Unraveling a Complex Web of Transactions
A specialized team of ED’s cyber experts meticulously examined an intricate network of cryptocurrency transactions conducted through multiple crypto wallets. Investigators discovered that several transactions had been executed via the dark web to obscure their traceability.
Authorities traced and analyzed a vast number of web wallets, employing ground intelligence to pinpoint the locations and digital devices containing the illicitly acquired cryptocurrencies. Sources confirmed that the seized assets, worth ₹1,646 crore, have been transferred to a secure crypto wallet under ED’s control, marking the largest seizure of virtual digital assets in an ongoing money laundering probe.
Global Scheme and Its Key Players
During the course of the investigation, the ED established that BitConnect, an unincorporated organization, orchestrated an elaborate global network of promoters. These promoters were incentivized with commissions for their efforts in expanding the fraudulent investment scheme.
The case remains under active investigation as authorities continue to trace additional assets and individuals involved in the elaborate money laundering operation.
