Cryptocurrency investors duped Rs 1200 cr using fake crypto coins: Report

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The Enforcement Directorate has reported that around 900 people have been duped of Rs 1200 crore in an “Initial Coin Offering” (ICO) of a cryptocurrency that is non-existent. The concept of new cryptocurrency was introduced by a person in Kerala. Investing in the stock markets was made to look as attractive as an Initial Public Offering (IPO).

A report by The Indian Express has revealed that investments in fake cryptocurrencies were made in the year 2020 after the lockdown was imposed. The crypto under the name “Morris Coin” was listed on an exchange based in Coimbatore called Franck Exchange. The investors were given a lock-in period of 300 days.

The report quoted an ED source as claiming that 10 coins of Morris were worth Rs 15,000. E-wallets were offered to investors to deposit money with the classic promise of manifold returns in a short period of time. Money was easily withdrawn from that e-wallet. The source claimed that the fraudsters then took money out of the wallet and started investing directly in real estate properties in states like Kerala, Tamil Nadu and even Karnataka. No source of income was shown prior to purchase.

The government agency also conducted raids in other states including Kerala, Tamil Nadu, Karnataka and even Delhi. The ED searched Bengaluru-based Long Rich Technologies and Morris Trading Solutions. In addition, Unni Mukundan Films Pvt Ltd and Nextel Group were also searched in connection with the crypto bust. The ED wanted clarity about the source of income for investment in the production company.

Reports suggest that a 31-year-old man named Nishad has been found to be one of the main perpetrators of this scam. She is also reportedly linked with Malayalam actor Unni Mukundan of Unni Mukundan Films. Suspects with no specific financial and educational background are also being investigated in this case.

Cryptocurrency investors duped Rs 1200 cr using fake crypto coin: report first appeared on BGR India.

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