ED Probes USD 35 Million Crypto OTC Scam; Bengaluru-Based Mastermind Among Accused
Bengaluru, July 21: The Directorate of Enforcement (ED), Bengaluru Zonal Office, has initiated an investigation under the Prevention of Money Laundering Act (PMLA) into an alleged large-scale cryptocurrency fraud involving Over-the-Counter (OTC) trades in Virtual Digital Assets (VDAs). The investigation is based on an FIR registered by the Cyber Crime Police Station, South Andaman, following a complaint filed by a Dutch entity.
According to the ED, the accused allegedly cheated investors by promising discounted cryptocurrency tokens, including MultiverseX, Kava, BEAM, GRASS, SUI, VANA and AGLD, which were either not supplied or not supplied in full.
The agency identified Mohammed Waseem, Saurabh Diwan and Vaibhav Gupta as accused. It alleged they used private Telegram groups, in-person meetings and false credentials to gain the complainant’s trust before inducing larger investments. ED said the funds were routed through crypto wallets to Bengaluru-based Ravindra K, identified as the alleged mastermind behind the OTC deals.
Searches conducted on July 18 and 19 under the PMLA revealed that the accused projected themselves as “Key Opinion Leaders” in the crypto sector, promoted token offerings through Telegram, WhatsApp, Instagram and websites, collected VDA investments by promising discounted allocations and high returns, and allegedly diverted the proceeds for personal expenses, business purposes and investments.
The searches resulted in the seizure of digital devices, email records and cryptocurrency wallets allegedly used to siphon proceeds of crime. ED also seized virtual digital assets worth 8,700 USDT.
According to the agency, the alleged fraud is valued at around USD 35 million, substantially higher than the approximately USD 10 million cited in the FIR. ED said several foreign entities and investors are believed to have been similarly cheated, although they have not yet filed criminal complaints.
Further investigation is underway.
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