The arrest of a man in connection with the phony crypto-Morris coin case was reported by the Kozhikode sub-zonal Office of Enforcement Directorate (ED). Abdul Gafoor, director of Stox Global Brokers Pvt Limited, was the person arrested.
He was arrested on Thursday, according to ED sources. He was arrested in connection with an investigation into alleged money laundering by major defendant Nishad K and others in the fraudulent crypto Morris Coin case, in which over 900 investors were reportedly defrauded of Rs 1,200 crore.
According to sources, Gafoor actively supported the placement and stacking of criminal proceeds. Through Stox Global Brokers Pvt Limited, about Rs 39 crores were moved. The special court that hears PMLA matters remanded the accused in judicial custody.
According to an official source, “ED has filed a custody application with the court, and it will be heard on Monday.”
Earlier, the Enforcement Directorate has attached assets worth Rs 36.72 crore in connection with an investigation into an alleged scam in which investors were misled into participating in a ‘initial coin offering’ of a non-existent crypto currency called Morris Coin.
In a press statement at the time, the ED said it had attached assets worth Rs 36,72,47,752 from Nishad and his associates in the case filed under the Prevention of Money Laundering Act.
The attached assets included money (in rupees) equivalent to cryptocurrencies purchased out of the proceeds of crime by a close associate, balances in multiple bank accounts of Nishad and his companies, immovable property including the land of a close associate of Nishad. So, and money (in rupees) equivalent to cryptocurrencies purchased out of the proceeds of crime by the close associate.
Based on a FIR filed by Kerala Police under the IPC, the ED launched a money laundering probe. Multiple FIRs had been filed in connection with the incident in various districts throughout Kerala, including Malappuram, Kannur, and others.
According to the FIR, over 900 investors were duped out of Rs 1200 crore.
The funds were utilized to purchase immovable property, numerous crypto currencies, expensive cars, and money was spent at high-end hotels and resorts.
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