ED attaches assets of Kerala man who duped investors of Rs 1,200 cr by offering cryptocurrency

cnbctv18.com:

The Enforcement Directorate on Monday said it has attached assets of a Kerala-based businessman who allegedly cheated over 900 investors to the tune of Rs 1,200 crore in the name of offering cryptocurrency to them. The action by the federal anti-money laundering agency has been taken against Nishad K and his associates who allegedly lured depositors in the name of launching 'Morris Coin cryptocurrency'.A provisional order under the Prevention of Money Laundering (PMLA) has been issued to attach properties that include "balances in multiple bank accounts of Nishad K and his companies, immovable property including the land of an associate close to Nishad K and Indian Rupee equivalent of cryptocurrencies purchased out of the proceeds of crime by a close associate".

The total value of the attached assets is over Rs 36.72 crore.Also Read:Cryptocurrency crime in 2021 hits all-time high in valueNishad K, the agency said, through his companies like Long Rich Global, Long Rich Technologies and Morris Trading Solutions collected deposits from investors "in the guise of initial coin offer for the launch of Morris Coin cryptocurrency."Also Read: CryptoWire rolls out global index 'Cryptocurrencies IC15'"Investors were impressed by conducting promotional events in the presence of celebrities, introducing the investors to flashy websites by the provision of e-wallets to each investor via web-based applications," the ED said in a statement. The amounts so collected by "duping" the investors were siphoned through various companies operated by Nishad K and his associates, it alleged.

The ED said deposits taken from the public were illegal and without any statutory permission from any regulatory agencies. "This was a ponzi scheme and