ED Carries Out Raids Across Multiple Sites in Money Laundering Investigation
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Synopsis
On February 24, the ED's Chandigarh Zonal Office conducted searches at six locations in Haryana, leading to the seizure of Rs 17.20 crore in cryptocurrency linked to Mahesh Kumar and associates, under PMLA provisions in a recent scam case.
Key Takeaways
- ED raided six locations in Haryana.
- Seized cryptocurrency worth Rs 17.20 crore.
- Mahesh Kumar and associates implicated.
- Investigation initiated from a victim's complaint.
- Mobile phones seized for forensic analysis.
New Delhi, Feb 27 (NationPress) The Directorate of Enforcement (ED), Chandigarh Zonal Office has executed searches on February 24 at six distinct locations in Haryana, discovering and confiscating cryptocurrency valued at Rs 17.20 crore spread across various wallets, which are linked to one Mahesh Kumar and his associates. This action was taken under the provisions of the PMLA in a recently registered cryptocurrency scam case, as stated by an official on Thursday.
According to the ED, "The search operations also led to the seizure of several mobile phones that were used to access cryptocurrency wallets via multiple applications installed on these devices. These phones have been forwarded for forensic analysis, which is anticipated to provide more incriminating evidence. The cryptocurrency scheme was being conducted from a seemingly ordinary and remote area in Haryana to evade law enforcement agencies."
The ED commenced its investigation based on an FIR filed by the Haryana Police, coupled with a complaint from a victim of this fraudulent cryptocurrency investment scheme.
"One Mahesh Kumar s/o Kashmir Lal from Hissar, along with three accomplices from Bhiwani, Haryana, have been implicated in this operation. They collectively misled numerous investors into investing in cryptocurrency, promising them exorbitant returns and ultimately defrauding them of crores of rupees," the ED's statement elaborated.
The ED’s investigation uncovered that multiple cryptocurrency wallets were controlled by the mastermind Mahesh Kumar, in active collaboration with his co-conspirators.
The individuals mentioned above orchestrated the scam with the malicious intent of generating funds through deceitful promises of high investment returns in cryptocurrency, consequently generating Proceeds of Crime (POC). By employing this modus operandi, Mahesh and his team not only generated POC but also obscured it by investing in cryptocurrency wallets through decentralized exchanges.
"This revelation underscores the rapidly expanding nature of cryptocurrency activities, presenting new challenges for regulators and law enforcement. The ED is dedicated to enhancing efforts to monitor and address both legal and illicit cryptocurrency operations, irrespective of their location," stated the ED.
Ongoing investigations are in progress.
