How Indian Authorities Busted an Alleged Crypto Scam Operation

Core Viewpoint - India's Enforcement Directorate (ED) has initiated a crackdown on a cryptocurrency fraud operation in Maharashtra, leading to significant investor losses estimated at over Rs. 4.25 crore (approximately $472,000) [1][3]. Group 1: Investigation Details - The ED conducted search operations at three locations in Nagpur on January 7, 2023, under the Prevention of Money Laundering Act (PMLA), 2002 [1]. - The investigation targets Nished Mahadeo Rao Wasnik and his associates, who allegedly operated an unauthorized online platform called "Ether Trade Asia" [2]. - The group is accused of organizing promotional seminars in premium hotels, misleading attendees about investment opportunities to defraud them [2]. Group 2: Financial Misconduct - The ED claims that the group fabricated a fraudulent binary commission scheme, promising exorbitantly high returns on investments in 'Ethereum' cryptocurrency [2]. - Funds raised from investors were reportedly used for personal expenses, and the accused acquired both movable and immovable properties, either directly or through family members [3]. - A portion of the funds was also used to purchase cryptocurrencies, which were concealed in personal wallets [4]. Group 3: Seizures and Freezes - The ED has frozen bank balances exceeding Rs. 20 lakh (approximately $22,000) and a personal wallet containing digital assets valued at around Rs. 43 lakh (approximately $51,000) [5]. - Authorities identified several properties, including benami properties worth several crores of rupees, allegedly acquired by the accused [5][6].