The Directorate General of Enforcement of India has taken strict action against crypto-related crimes; it is a division under the Indian Ministry of Finance. Police in one of the states filed an FIR that has provoked a flurry of investigations. The department got hold of $5 million worth of assets in the crypto scam.
This act deprived investors of $162 million. Bitcoin.com reports that the scam includes a bogus cryptocurrency Morris Coin. The company involved in deceiving investors to invest money for Morris Coin. Local police officials say that the company used advanced websites to commit negligence.
3. Indian Enforcement Bureau (@dir_ed) seized property worth approximately $5 million in connection with a # cryptocurrency scam related to #MorrisCoin that was deceiving #investors for a total of $162 million. https://t.co/VbsT5p8hn5
– BlockchainedIndia (@blockchainedind) January 13, 2022
Scams involving multiple currencies
The scam had more than 900 investors join its ring; the company introduced an Initial Coin Offering (ICO) for investors’ funds. The company used the funds to purchase luxury properties, accessories, and other crypto assets. ED reports that the mastermind of the scam is Nishad K and his associates.
Bitcoin.com cites the ED statement regarding the seizure. It reads, “Cryptocurrencies such as ETH, BTC, BNB, YFI, ADA and USDT, valued at INR 25,82,794 and maintained at crypto exchanges in India and internationally, have been find. They were purchased from proceeds of crime. During the investigation, all of the above cryptocurrencies were converted into Indian rupees and transferred to a bank account by the owner of the coin. “
Cryptocurrency Market Faces Huge Security Risk
The cryptocurrency market has seen significant gains over the past few years. Investors are interested in putting a lot of money into the market to get huge profits. The desire to make huge profits in a short time feeds scammers, and they prey on investors and amateur traders in the market.
The cryptocurrency market is fraught with risks and one needs to take adequate safety measures and conduct proper investigations before purchasing virtual assets. Some scam companies try to trick individuals into investing in foreign currencies and offer lucrative trading schemes.
The ED investigation also resulted in many users seeking to put their funds on the market without proper background checks and gathering detailed security information. Investors new to the cryptocurrency market should check with experts before investing. Strict measures are crucial to avoid falling prey to cyberattacks.