The Central Bureau of Investigation on Friday booked seven people in a case related to digital currency Ponzi schemes, which promised high returns and involved cryptocurrency transactions exceeding Rs 350 crore.
The agency conducted searches at 10 locations across seven States and union territories. In the searches, several incriminating digital evidence and devices were discovered including Cash of Rs 34 lakh, Digital Virtual Assets of USD 38,414 (approx) in the cryptocurrency wallets.
CBI has registered a case under Section 120B with Section 420 of the Indian Penal Code (IPC) and Section 66D of the Information Technology Act, 2000, against seven accused individuals (who are running separate organised cybercrime modules) and are based in the cities of Delhi, Hazaribag, Bathinda, Ratlam, Valsad, Pudukkottai, Chittorgarh. It was alleged that accused persons, acting in criminal conspiracy, have been actively floating various Ponzi and fraudulent schemes, promising high returns based on cryptocurrency investments.
They are also accused of promoting, promising, and disseminating false and deceptive information to entice investors into these unregulated deposit schemes, which operate without requisite approvals from regulatory authorities such as the Reserve Bank of India (RBI).
In connection with the investigation, CBI conducted search operations at 10 locations across seven States/Union Territories in Delhi, Jharkhand, Punjab, Madhya Pradesh, Gujarat, Tamilnadu and Rajasthan. The searches resulted in the recovery of cash amounting to Rs 34.2 lakh(approx), along with significant digital evidence, including seven mobile phones, one laptop, one tablet, three hard disks, 10 pen drives, memory cards, SIM cards, ATM/debit cards, email accounts, and several incriminating documents.
Furthermore, Digital Virtual Assets amounting to a total of USD 38,414 (approximately) were virtually seized in the cryptocurrency wallets of the accused persons which have been digitally secured for investigation.
These Ponzi schemes were being promoted through multiple social media groups. An analysis of bank account transactions and cryptocurrency wallets has revealed that the illegal proceeds from these schemes were being converted into cryptocurrencies to obscure their origin.
Investigations have uncovered that the accused holds multiple bank accounts and Virtual Digital Asset (VDA) wallets with cryptocurrency exchanges, including CoinDCX, WazirX, Zebpay, and BitBns. Over two years, these accounts and wallets witnessed transactions exceeding Rs 350 crore. The victims were allegedly defrauded under various pretences, such as online loans, online lucky orders, UPI frauds, and Internet banking scams.
The investigation is continuing.
(With inputs ANI)
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