ED attaches assets worth Rs 14 cr in cryptocurrency cheating case
New Delhi, July 11 (IANS) The Enforcement Directorate (ED) on Monday said it has attached assets worth Rs 14 crore in the Morris Coin cryptocurrency cheating case under the Prevention of Money Laundering Act (PMLA).
The attached assets include the balance in the bank accounts of Flywithme Mobile LLP (a firm owned by Nishad K) and immovable properties of the associates of Nishad K, purchased from the proceeds of crime.
The attached properties include the bank balance in the bank account of Flywithme App, a hospital in Kochi, and 52 acres of agricultural land in Tamil Nadu.
The ED initiated the money laundering investigation on the basis of various FIRs registered in police stations against Nishad K and other persons for cheating people on the pretext of giving high returns of 2-3% per day to the investors.
"During the course of investigation it has been ascertained that Nishad K via his various firms such as Long Rich Global, Long Rich Technologies and Morris Trading Solutions collected deposits from the investors in the guise of Initial Coin Offer for the launch of Morris Coin Crypto Currency. By conducting promotional events in the presence of celebrities, introducing the investors to flashy websites and by provision of e wallets to each investor via web-based applications, Nishad K has collected deposits from the investors via various pin stockists," said the ED.
The amounts so collected were then transferred into the bank accounts of Nishad K and his firms. Subsequently, the collected amounts were layered into shell companies. From the bank statement analysis of the accounts pertaining to Nishad K and his firms, it was found that numerous firms/companies were used to launder the proceeds of crime into multiple bank accounts.
The ED has conducted searches across the country at the premises of Nishad and his associates and has seized various incriminating documents.
Earlier movable and immovable property to the tune of Rs 36.72 crore was attached by the ED.
Abdul Gafoor, Managing Director of Stoxglobal Brokers Pvt. Ltd, was arrested on March 24.
The ED filed a chargesheet against six accused before the Special Court PMLA, Kozhikode on May 21.
The total attachments in this case now stand at Rs. 50.72 crore.