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The Enforcement Directorate (ED) has uncovered an alleged cryptocurrency over-the-counter (OTC) trading fraud involving more than 35 million US dollars (around Rs 300 crore), significantly higher than the 10 million US dollars mentioned in the initial FIR.
The ED’s Bengaluru Zonal Office launched the investigation based on an FIR registered at the South Andaman Cyber Crime Police Station.
A Dutch company filed the complaint, alleging that the accused defrauded investors by promising popular cryptocurrency tokens at discounted prices.
According to the ED, accused Mohammad Wasim, Saurabh Diwan and Vaibhav Gupta gained investors’ confidence through Telegram groups, social media platforms and personal meetings.
They initially completed small OTC transactions successfully to build trust before encouraging larger investments.
The agency alleged that the accused claimed to offer discounted tokens of well-known crypto projects, including MultiverseX, Kava, BEAM, GRASS, SUI, VANA and AGLD. After receiving investments, they allegedly failed to deliver the promised tokens.
The ED further said that the cryptocurrency collected from investors was routed through multiple wallets before being transferred to a Bengaluru-based individual identified as Ravindra.
The ED conducted searches on July 18 and 19, during which it seized digital devices, email records, cryptocurrency wallet data and other electronic evidence. It also recovered virtual digital assets worth 8,700 USDT.
According to the agency, the accused projected themselves as ‘Key Opinion Leaders’ in the cryptocurrency industry on social media to attract investors by promising high returns.
The ED alleged that the accused used the proceeds of the fraud to purchase personal assets, fund businesses and meet personal expenses.
The agency also said that the accused allegedly duped several foreign nationals, besides Indian investors, in the scheme, although the foreign nationals have not filed any complaints so far.
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