The Enforcement Directorate (ED) has conducted searches at multiple locations in Mumbai and Thane as part of its investigation into an alleged Rs 113.10-crore cryptocurrency investment scam linked to a scheme called Money Trade Coin (MTC).
The investigation stems from an FIR registered earlier by the Thane Police, which was subsequently taken up by the ED under the provisions of the Prevention of Money Laundering Act (PMLA). The agency is probing allegations that investors were lured into the cryptocurrency scheme with promises of guaranteed and unusually high returns, reported NDTV.
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According to the allegations, Money Trade Coin was operated in the manner of a Ponzi scheme, with investors allegedly being promised profits significantly higher than prevailing market returns. The scheme reportedly attracted investors by presenting itself as a legitimate and highly profitable cryptocurrency investment opportunity.
During its latest searches, the ED seized approximately Rs 1 crore in cash, along with several documents that investigators suspect may be relevant to the case. The agency also confiscated digital devices, including laptops and hard drives, containing potentially important data related to the alleged financial transactions and operations.
Amit Lakhanpal has been named the alleged mastermind behind the scheme. According to investigators, Lakhanpal sought to establish credibility with prospective investors by fraudulently posing as a Ministry of Finance official.
The ED is conducting a detailed money-laundering investigation against Lakhanpal and four other individuals under the PMLA. Investigators are examining the alleged movement of funds and the role played by each accused in the investment scheme.
The probe has also uncovered alleged preparations to leave India. According to the investigation, authorities recovered passports belonging to the Caribbean nation of Antigua and Barbuda from the accused, as per the reports.
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Lakhanpal is reportedly no longer in India and is believed to have fled the country to evade investigators. According to information cited in the case, he is currently believed to be hiding in Dubai.
The ED investigation is continuing, with officials examining financial records, digital evidence and the alleged international links of the accused.
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