A'bad: ED Seizes Cryptocurrency Worth ₹1.6K Cr
Officials impound ₹13.5L cash, SUV, several devices in money laundering probe
Crime
- Updated 81 days ago
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The Enforcement Directorate (ED) has seized cryptocurrency worth ₹1,646 crore in its biggest-ever crackdown on a mega money laundering investigation linked to a fraudulent investment scheme. The scheme duped numerous investors under the pretense of securities investments, official sources said.
In addition to the crypto assets, the ED’s Ahmedabad office also seized ₹13.50 lakh in cash, an SUV, and multiple devices following a fresh round of searches on Saturday. The probe is linked to the unregistered and fraudulent sale of securities through the ‘BitConnect’ lending programme.
Deep Investigation into Crypto Transactions
The investigation, launched under the Prevention of Money Laundering Act (PMLA), originated from an FIR filed by the Surat police crime branch, which alleged that the fraud took place between November 2016 and January 2018, shortly after demonetization.
A team of tech experts was deployed to analyze a complex web of transactions spread across multiple crypto wallets, many of which were operated via the dark web to obscure their origins. Using advanced tracking techniques and ground intelligence, the agency successfully traced and secured the digital wallets containing the illicit funds.
Biggest Crypto Seizure in India’s History?
The ED has now transferred the seized cryptocurrency into a specialized agency-controlled wallet, making it the largest-ever seizure of virtual digital assets in an Indian money laundering case. The investigation remains ongoing, with foreign nationals also under scrutiny.
How the Fraud Worked
The ED probe revealed that the founder of BitConnect set up a global network of promoters, enticing investors by offering high commissions and promising returns of up to 40% per month through a so-called "Trading Bot."
‘BitConnect’ falsely claimed that investor funds would be traded for profits, promising 1% daily returns, or 3,700% annually. However, these returns were entirely fictitious, as the accused never actually traded the funds. Instead, they diverted the money into digital wallets controlled by themselves and their associates.
The ED had previously attached assets worth ₹489 crore in connection with this case. Meanwhile, the main accused is already under investigation by US federal authorities, with international links still being probed.
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