ED attaches Rs 1.06 crore in Shillong probe into massive Rs 45 crore crypto scam

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Enforcement Directorate Takes Action Against Large-Scale Cryptocurrency Scam

The Enforcement Directorate (ED) has provisionally attached assets worth approximately $140,000 in connection with a large-scale cryptocurrency scam that allegedly swindled investors out of over $6 million.

Background of the Scam

The scam, which operated through an application called Global Media App, presented itself as an online advertising platform but functioned as a Ponzi scheme. Victims were lured in with promises of daily passive income for viewing videos and were encouraged to purchase VIP membership plans, assured of high returns and referral commissions.

According to the ED, “The scam ran from June to October 2022, after which the perpetrators abruptly shut down the application and made off with the funds.”

Investigation Progress

The investigation was initiated following a local complaint filed at the Madanrting Police Station. The ED’s Shillong Sub-Zonal Office has estimated that the total proceeds of crime generated by the scam amount to approximately $6.3 million. The attached assets represent a small fraction of this total, but they demonstrate the agency’s efforts to track down the money trail.

Complex Layering Mechanism

The ED’s investigation has revealed a complex layering mechanism employed by the scammers to conceal their tracks. They used “mule accounts” – rented bank accounts and merchant IDs – to route funds through payment gateways. Additionally, around $240,000 was collected directly from victims in the form of USDT (Tether) on the TRON blockchain before being transferred to foreign cryptocurrency exchanges.

International Operational Structure

The probe has also uncovered an international operational structure, with Telegram channels used to lure investors managed by individuals from Cambodia and Malaysia. Furthermore, Google accounts used to oversee the application’s backend were controlled by individuals from these countries.

Ongoing Efforts

The ED has stated that the attached funds were identified through analysis of financial transactions and blockchain transfers. Ongoing efforts are focused on tracing the remaining $4.4 million and identifying the ultimate recipients of the money on foreign exchanges.