The Enforcement Directorate (ED) has attached assets worth over Rs 36.72 crore of Nishad K, Managing Director and his associates in the case of Morris Coin Crypto Currency Case under the Prevention of Money Laundering Act linked to a cheating case involving alleged fraud of Rs 1,200 crore.
The attached assets include balances in multiple bank accounts of Nishad K and his companies, immovable property including land of one of his associates and rupee equivalent of crypto currencies purchased out of the proceeds of crime.
The ED initiated money laundering investigation on the basis of multiple FIRs registered by Kerala Police in various districts including Malappuram, Kannur and others. As per the FIRs, more than 900 investors were cheated to the tune of Rs 1,200 crore.
The money laundering investigation carried out so far revealed that Nishad K, through his various companies like Long Rich Global, Long Rich Technologies and Morris Trading Solutions collected deposit money from the investors in the guise of Initial Coin Offer for the launch of Morris Coin Crypto Currency, the ED said in a statement.
“Investors were impressed by conducting promotional events in the presence of celebrities, introducing the investors to flashy websites by provision of e-wallets to each investor via web-based applications. The amounts so collected by duping. the investors were siphoned through various companies operated by him and his associates,” it said.
The deposits taken from the general public were illegal and without any statutory permission from any regulatory agencies. This was a ponzy schemes and investors were lured with the promise of very high return.
The money obtained was used for the purchase of immovable properties, various other Crypto currencies, luxury cars and for spending in luxury hotels and resorts.
In this regard, the crypto currencies such as Ethereum (5.92387265), BTC (0.08267646), BNB (5.51232875), YFI (0.023062), VET (4284.4), ADA (226.479601), USDT (35.88576551) totally valued at INR 25,82,794 were found and all the above crypto currencies, purchased out of the proceeds of crime, were converted into rupees and attached by the ED, it said.
In addition, a search action was conducted at 11 premises situated across various States like Kerala, Karnataka, Tamil Nadu and New Delhi resulting in identification of assets worth several crores of rupees in the form of immovable property and other details.
The searched premises include the residential and office premises of the entities that are related to Nishad K and his companies.