The Enforcement Directorate (ED) has uncovered a pan-India syndicate using 26 fake websites to cheat investors in a cryptocurrency scam. The accused promised high returns and targeted both Indian and foreign nationals to collect funds.
New Delhi [India], December 22 (ANI) The Enforcement Directorate (ED) has unearthed 26 websites being used by a pan-India syndicate to cheat gullible investors from across the country and abroad by creating fake cryptocurrency investment platforms that mimics genuine investment platforms advertising astronomical returns.
The accused targeted foreign nationals as well as Indian citizens and collected funds in the guise of investment majorly in the form of cryptocurrency through the websites designed by them. These websites are goldbooker.com, fincorp.com, wozur.com, theapexpower.com, mygoldrev.com, cryptobrite.com, cryptexify.com, goldxcapital.com, hawkchain.com, cubigains.com, paymara.com, bitcodeals.com, hackandpool.com, turbominers.com, growmore.com, bitminerclub.com, bitrobix.com, primetrades.com, zylotrade.com, cryptobtctrade.com, cryptogames24hrs.com, hydrominers.com, bitleeds.com, bixotrade.org, jumboticket.network, and metaaibox.com.
Modus Operandi: Building Trust and Deception
ED investigation reveals that the accused target gullible investors from India and abroad promising quick returns. ED said that the accused use photos of reputed crypto experts, famous personalities without consent for promotions.
As per the modus operandi, ED said, initial investors were paid some returns to gain trust and attract more investors like a classic MLM scheme. Offers referral bonuses and used social media platforms such as Facebook, Instagram, WhatsApp, Telegram etc. to market their schemes and increase the scale of the fraud, the agency investigation reveals.
Laundering the Proceeds of Crime
Besides, the accused created multiple crypto wallets, foreign bank accounts and companies to gather the Proceeds of Crime (POC), and the modus operandi involved transfer of funds to India through hawala, accommodation entries as well as through Peer to Peer (P2P) crypto transfer to others.
“The accused also utilised the POC to create assets in India and Abroad,” said the ED, pointing “some of the (26) websites were created and used by the accused for executing their above-mentioned modus.”
The modus was used by the accused since the 2015 and the POC generated in the form of cryptocurrency was utilised by the accused directly in crypto transactions wherever possible, converted into cash and bank balance using peer-to-peer crypto transaction using certain crypto platforms, it further said.
“The POC generated in this way has been utilized by the accused persons in acquiring movable and immovable properties in India and abroad.”
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