🔥 Key Takeaways
- Indian authorities busted an alleged crypto scam operation in Maharashtra, resulting in investor losses of over Rs. 4.25 crore (approximately $472,000).
- The Enforcement Directorate (ED) conducted search operations at three locations in Nagpur under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
- The scam operation targeted investors through a cryptocurrency trading platform, promising unusually high returns.
Indian Authorities Crack Down on Crypto Scam Operation
India’s Enforcement Directorate (ED) has successfully busted an alleged cryptocurrency fraud operation in Maharashtra, resulting in significant investor losses. The ED conducted search operations at three locations in Nagpur on January 7, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The scam operation is believed to have caused investor losses of over Rs. 4.25 crore (approximately $472,000).
Details of the Scam Operation
The alleged scam operation targeted investors through a cryptocurrency trading platform, promising unusually high returns. The scammers lured investors into investing in the platform, which claimed to offer lucrative returns on investments in cryptocurrencies such as Ether. However, the platform turned out to be a Ponzi scheme, with early investors being paid off with funds from later investors.
Investor Losses and ED’s Action
The ED’s investigation revealed that the scam operation had caused significant losses to investors, with the total amount of losses estimated to be over Rs. 4.25 crore. The ED has frozen the assets of the accused individuals and is conducting further investigations to identify other potential victims and perpetrators of the scam.
Read Also Epochs
