According to a news release issued on Monday, the Enforcement Directorate in India seized assets of a businessman worth roughly US$4.9 million in a money laundering investigation involving a crypto fraud.
Nishad K and his collaborators are accused of defrauding 900 investors out of about US$162.4 million in a crypto scheme. After many allegations from scam victims were filed with Kerala police, the ED initiated an inquiry into the scam.
According to the ED press release, the accused and his associates received money from investors under the guise of an Initial Coin Offering for a non-existent cryptocurrency named Morris Coin.
The funds raised from investors were utilized to buy cryptocurrency, real estate, automobiles, and luxury hotel and resort stays.
More so, The ED also seized cryptocurrencies like as Ethereum, Bitcoin, Binance Coin. Then, and Cardano, among others, that were purchased with revenues from the crime.
So, Scams involving cryptocurrency are on the rise all around the world. Also, Crypto crimes reached a new all-time high last year, according to Chainalysis statistics. That’s, with illegitimate addresses earning US$14 billion, up 79 percent from US$7.8 billion in 2020.
Currently, there is no regulatory structure in place for cryptocurrencies in India. The next legislative session is expected to see legislation introduced.
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