Bengaluru, July 21 (IANS) The Directorate of Enforcement (ED), Bengaluru Zonal Office, has launched an investigation under the Prevention of Money Laundering Act (PMLA), 2002, into an alleged multi-million-dollar cryptocurrency scam involving over-the-counter (OTC) trades in Virtual Digital Assets (VDAs).
During search operations, incriminating evidence in the form of digital devices and virtual digital assets amounting to 8,700 USDT was seized. USDT (Tether) is a type of cryptocurrency known as a “stablecoin,” designed to maintain a value of approximately 1 US dollar per token.
Significantly, the agency said its investigation has revealed that the total value of the scam is approximately USD 35 million, substantially higher than the USD 10 million mentioned in the original FIR.
The ED further stated that several foreign entities and investors may have been similarly defrauded, although many have not yet lodged formal complaints.
ED Bengaluru conducted search operations under PMLA on July 18 and 19 at multiple places in connection with the large-scale scam in OTC trades of VDAs. The accused allegedly defrauded foreign investors by promising discounted crypto tokens such as MultiverseX, Kava, BEAM, GRASS, SUI, VANA and AGLD.
The probe stems from an FIR registered by the Cyber Crime Police Station in South Andaman following a complaint filed by a Dutch entity, which alleged that it was cheated in cryptocurrency transactions worth millions of dollars.
According to the ED, the accused, Mohammed Waseem, Saurabh Diwan and Vaibhav Gupta, lured investors by promising heavily discounted crypto tokens. They used private Telegram groups, in-person meetings and false credentials to gain trust.
Investigators alleged that the accused initially completed smaller OTC cryptocurrency transactions successfully to encourage larger investments. They purportedly claimed to have guaranteed access to discounted token allocations from leading crypto projects.
However, after receiving multi-million-dollar investments, the accused allegedly stopped delivering the promised digital tokens as market prices surged. The ED said the funds were routed through cryptocurrency wallets to Ravindra K, a Bengaluru-based individual identified as the alleged mastermind behind the OTC deals.
The ED found that the accused projected themselves as “Key Opinion Leaders” in the crypto industry and promoted token offerings and private placements through social media platforms such as Telegram, WhatsApp, and Instagram, as well as on websites.
According to the agency, the accused solicited investments by promising substantial returns and allegedly diverted the proceeds of crime for personal expenses, business activities and investments in movable and immovable properties.
Searches carried out under PMLA led to the seizure of digital devices, email accounts and crypto wallets allegedly used to siphon off the proceeds of crime. The ED also seized virtual digital assets worth 8,700 USDT.
Further investigation into the case is underway.
–IANS
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