The Enforcement Directorate (ED) has issued orders to attach assets worth ₹8.54 crore belonging to Hemant Ishwar Sharma, the owner of a fraudulent bitcoin investment scheme that allegedly duped investors of nearly ₹200 crore over a five-year period beginning 2014. The ED's Dehradun Sub Zonal Office issued the Provisional Attachment Order on 31 July under the Prevention of Money Laundering Act (PMLA), 2002.

How the Fraud Operated

Sharma allegedly lured investors across India into depositing funds on an Iceland-registered website, BTCFUND.IS, which he controlled, by promising high returns on bitcoin investments. He falsely claimed that several foreign nationals were associated with the venture, projecting it as an internationally backed operation to build credibility among prospective investors.

The scheme ran for approximately five years, from 2014 to 2018. Once Sharma had accumulated substantial bitcoins and won investor trust, he abruptly shut down the website, leaving depositors with no recourse. Blockchain analysis subsequently identified retained proceeds of crime of approximately 856.23 BTC, valued at around ₹200 crore, which were laundered through crypto exchanges.

Assets Traced and Attached

According to the ED, the laundered proceeds were used to purchase real estate, acquire vehicles, and renovate Sharma's personal residence. Investigators found that Sharma had no formal source of income beyond funds collected through BTCFUND.IS, yet maintained two luxury cars, a bungalow at a prime location in Dehradun, and multiple immovable properties in Dehradun and adjoining areas.

The current attachment order of ₹8.54 crore follows an earlier Provisional Attachment Order under which movable and immovable properties worth ₹4.56 crore were already attached, bringing the total attached assets to over ₹13 crore.

Legal Proceedings So Far

The ED's investigation was initiated on the basis of two separate First Information Reports (FIRs) — one registered by Police Station Rajpur, Dehradun, and another by Police Station Dineshpur, District Udham Singh Nagar, Uttarakhand — both filed against Sharma and others under the Indian Penal Code, 1860, for cheating investors.

Sharma was subsequently arrested by the ED and is currently lodged in Siddhowala Prison, Dehradun. The agency filed a chargesheet against him on 20 May before the Special Court (PMLA), Dehradun, which took cognisance of it on 13 July.

Broader Context

This case is among a growing number of crypto-linked money laundering investigations pursued by the ED under the PMLA in recent years. The use of blockchain analysis to trace and quantify proceeds of crime marks an increasingly sophisticated enforcement approach, as regulators grapple with the anonymity that digital currencies can afford fraudsters. The attachment proceedings will now be adjudicated before the Special PMLA Court.