Indian authorities seize assets in alleged $162M crypto scam
The Enforcement Directorate in India seized assets of a businessman worth around US$4.9 million in a money laundering case involving a crypto scam, according to a press release on Monday.
Fast facts
- Nishad K and his associates allegedly perpetrated a crypto scam in which some 900 investors were cheated out of approximately US$162.4 million. The ED launched an investigation into the scam after Kerala police registered multiple reports from investors affected by the scam.
- The accused and his accomplices had collected money from investors under the pretext of an Initial Coin Offering of a non-existent cryptocurrency called Morris Coin, the ED press release said.
- The money collected from investors was used to purchase cryptocurrencies, immovable properties, cars, and luxury hotel and resort stays.
- The ED also seized cryptocurrencies purchased with the proceeds from the crime including Ethereum, Bitcoin, Binance Coin, Cardano, among others.
- Crypto scams are on the rise across the world. According to Chainalysis data, crypto crimes hit a new all-time high with illicit addresses receiving US$14 billion last year — increasing 79% from US$7.8 billion in 2020.
- India currently does not have a regulatory framework for cryptocurrencies. Legislation is expected to be floated in the next parliamentary session.
