The Enforcement Directorate (ED) has provisionally attached movable and immovable assets worth Rs 3,43,68,376 in the Morris Coin Crypto Currency Case (a cheating case) under the Prevention of Money Laundering Act (PMLA).
The attached assets include balance in bank accounts of Flywithme Mobile LLP (a partnership firm of Nishad K and Hasif K) and immovable property of Ansari P, an associate of Nishad K.
The ED initiated investigations on the basis of FIRs registered in various police stations against Nishad K and others for cheating people on the pretext of giving high returns of 2-3 percent per day to the investors.
The PMLA probe revealed that Nishad K collected deposits from the investors through his various firms such as Long Rich Global, Long Rich Technologies and Morris Trading Solutions in the guise of Initial Coin Offer for the launch of Morris Coin Crypto Currency.
“The money was redistributed to the investors in the guise of profits under a ponzi scheme initially and later the payments to investors were stopped. The profits generated by the accused out of the illegal activity were identified as Rs 54 crore,” the ED said in a statement.
Earlier, the ED had conducted multiple searches across the country on the premises of Nishad K and his associates, and had seized Rs.21 lakh approximately along with various incriminating documents.
Abdul Gafoor, Managing Director of Stoxglobal Brokers Pvt. Ltd and an associate of Nishad K was arrested on March 24, 2022. Movable and immovable properties pertaining to the firms and associates of Nishad K to the tune of about Rs 50.72 crore were provisionally attached and subsequently confirmed by the Adjudicating Authority.
The ED had also filed a Prosecution Complaint or chargesheet against six accused persons in this case before the Special Court, PMLA, Kozhikode on May 21, 2022.
Further investigation is under progress, the agency added.