Indian enforcement officials have seized a $ 190 million (Rs 1,646 crore) cryptocurrency in connection with the reporting investigation.
According to report by The Indian ExpressEnforcement Directorate (ED) in Ahmedabad – Law Enforcement Agency responsible for investigating economic crimes, and financial fraud – discovered in Gujarat on 11 and 15 February.
The ED also seized cash, an SUV and various digital devices $ 16,300 (Rs 13,50,500).
After the initial cases registered by CID Crime Police Station in Surat, the investigation comes under the prevention of the Money-Londering Act (PMLA).
Bitconnect promises investors up to 40%
According to ED officials, Bitkanect was operated globally between November 2016 and January 2018, which targets investors worldwide including India. The unrelated organization created a broad network of promoters, who received commission to bring new investors.
In 2016, the Bitkanect Ponzi Scheme was disguised as a high-up-up investment program, where investors were deceived in obtaining bitcanered coins and monthly up to 40% through a “instability software trading bot” Return was promised in the form.
The platform allegedly displayed “fictional” returns on its web portal, claiming about 1% daily returns, equal to 3,700% annually.
However, with any Ponzi plan, the operators of Bitconnect gave returns to investors using the funds from new investors. In its two-year run, the plan organized $ 2.4 billion from victims worldwide, with the collapse of both the plan and tokens after the US state regulators issued a struggle-and-unique order.
However, investigators called the claims fraud, as Bitkanect turned the investor fund into a digital wallet controlled by the accused instead of trading.
The ED investigation revealed a complex web of cryptocurrency transactions, many organized through the dark web to hide their origin. Despite these challenges, the authorities successfully detect several web wallets and located digital devices with cryptocurrency through ground intelligence.
This seizure adds to the earlier ED activities, including an attachment of assets of $ 56.5 million (Rs 489 crore). Sources reveal that foreign citizens were also among the investors of bitcanene, and American federal officials are investigating the “main accused”.
