India’s Enforcement Directorate Uncovers Cryptocurrency Ponzi Scheme, Seizes Assets

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India’s Enforcement Directorate uncovers a cryptocurrency Ponzi scheme involving HR Crypto Coin, seizing assets worth Rs. 260 crore. Learn more about the crackdown on Highrich Online.

Bollywood Fever: India’s Enforcement Directorate (ED) has dismantled a Ponzi scheme involving cryptocurrency operations tied to HR Crypto Coin, leading to significant asset seizures and freezing. The scheme enticed investors with promises of a 15% annual interest rate and a 30% direct referral income for introducing new customers.

ED Cracks Down on Highrich Online and HR Crypto Coin

The ED announced that its Kochi Zonal Office executed search operations on June 11 at 14 locations across Kerala, Maharashtra, and Chhattisgarh. These searches targeted the premises of the promoters and leaders of the Highrich Online Group under the Prevention of Money Laundering Act (PMLA), 2002.

The searches revealed that the company, its promoters, and leaders were engaged in cryptocurrency trading on multiple exchanges and were selling their own digital currency, HR Crypto Coin. According to the Indian authority:

“The HR Crypto Coin was sold in exchange for INR and USDT. The HR Crypto Coins were also part of a Ponzi scheme where people were lured to invest their money with promises of a 15% annual interest rate, and when a customer introduced a new customer, they received a 30% direct referral income.”

Origins and Operations of the Scheme

The ED’s investigation began with a first information report (FIR) filed by the Kerala Police and numerous complaints against the Highrich Group and its directors. The company was found to be selling memberships as digital IDs, providing user credentials to access their website for a fee. Members were incentivized to sell these memberships to others to earn commissions, with additional rewards for referrals. This scheme, lacking any real underlying business, was identified as a classic Ponzi scheme.

Results of the Raids

The raids resulted in the freezing of approximately Rs. 32 crore ($3.9 million) in various bank accounts associated with the company, its promoters, and their families. Additionally, authorities seized around Rs. 70 lakh ($85,365) in cash, jewelry, and four vehicles. The searches also uncovered immovable properties worth Rs. 15 crore, acquired through illicit funds.

Previous Operations

In January, the ED conducted searches at the premises of Highrich Smartech Pvt. Ltd., Highrich Online Shoppe Pvt. Ltd., and related entities. These operations revealed Rs. 212 crore in illicit funds, which were subsequently frozen under the PMLA. To date, the total proceeds of crime seized or frozen amount to Rs. 260 crore, including immovable property documents.

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Nicholas Edwards

Nicholas Edwards is a passionate writer with a keen interest in sports and business news. With a knack for delivering insightful and engaging content, Nicholas keeps his finger on the pulse of the latest developments in these dynamic fields. His enthusiasm for both sports and business shines through in his writing, making complex topics accessible to a wide audience. Whether it's dissecting the latest game-changing play or analyzing market trends, Nicholas brings a fresh perspective and a wealth of knowledge to his articles. Email @ admin@bollywoodfever.co.in

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