The Indian Enforcement Directorate took strict actions against the crimes involving cryptocurrencies; it is a department under the Indian Ministry of Finance. The police in one of the states filed an FIR that instigated a series of investigations. The department has taken hold of assets worth $5 million in the crypto scam.
The act has deprived investors of $162 million. Bitcoin.com reports that the scam included a non-real cryptocurrency Morris Coin. The company involved fooled investors into investing funds for Morris Coin. The local police officials say that the company used advanced websites to carry out the malpractice.
3. Indian Enforcement Directorate (@dir_ed) has seized assets worth approximately $5 million in connection with an alleged #cryptocurrency scam involving #MorrisCoin that has duped #investors out of $162 million. https://t.co/VbsT5p8hn5
— BlockchainedIndia (@blockchainedind) January 13, 2022
The Scam Involved Multiple Currencies
The scam had more than 900 investors on its fringes; the company introduced an Initial Coin Offering (ICO) for the investors’ funds. The company used the funds to buy opulent properties, accessories, and other crypto assets. ED reports that the scam’s mastermind is Nishad K and his associates.
Bitcoin.com quoted ED’s statement concerning the seize. It read, “Cryptocurrencies such as ETH, BTC, BNB, YFI, ADA, and USDT, valued at INR 25,82,794, and maintained at Indian and international crypto exchanges, were found. They were purchased out of the proceeds of crime. During the investigation, all the above cryptocurrencies were converted into Indian rupee and transferred to the bank account by the coins’ owner, which was attached.”
The Crypto Market Is Subject to Huge Security Risks
The crypto market has witnessed an enormous gain in worth past few years. Investors are interested in putting lots of money into the market to derive huge profits. The desire for huge returns within a short period feeds off the scammers, and they feast upon the amateur investors and traders in the market.
The crypto market is risk-laden, and one needs to take adequate safety measures and conduct accurate investigations before purchasing virtual assets. Several fraudulent companies attempt to trick individuals into investing in alien coins and introduce lucrative transaction schemes.
The ED’s investigation also led to many users looking to put their money in the market without proper background checks and obtaining detailed security information. Investors new to the crypto market should check with experts before investments. Strict measures are vital to avoid falling prey to cyberattacks.