In the country, a fraudulent cryptocurrency scam has surfaced. 900 people were defrauded of 1200 crore rupees in the name of a new cryptocurrency.
This has been revealed by the Enforcement Directorate. The Enforcement Directorate (ED) has raided numerous locations around the country in connection with this cryptocurrency scam.
The mastermind is thought to be a Kerala resident who has departed the country. There are also allegations of money laundering against him.
A South film actor’s home was also raided by the Enforcement Directorate. The actor, on the other hand, has denied any involvement in the cryptocurrency scam.
This cryptocurrency scam was carried out under the pretext of an Initial Coin Offering (IOC). The majority of those who have been defrauded.
Execute Such A Cryptocurrency Scam
The fake cryptocurrency “Morris Coin” was listed in 2020 along with the Coimbatore-based cryptocurrency exchange French Exchange, according to a news report published in the English publication Indian Express citing Enforcement Directorate sources.
It was presented to the general public in the same way that an initial public offering (IPO) is. The price of ten Morris coins was set at Rs 15,000, with a 300-day lock-in period.
The investor was also handed an e-wallet. The operator of this fake cryptocurrency has enticed investors by claiming that it would become costly soon.
Companies such as Long Rich Technologies, Long Rich Trading, and Long Rich Global initially drew investors in by claiming to have an online education app.
Morris Coin was later launched as its own cryptocurrency, with the pretense that it was listed on a cryptocurrency market. He also ran some quick money doubling schemes and stole money from investors in addition to this.
Money Invested In Real Estate And Other Works
According to ED sources, the con artists illegally made investments obtained from the investors in real estate. Kerala, Tamil Nadu, and Karnataka received the most of the FDI.
He didn’t say where the money came from or how much he put in. For the past few days, the ED has been conducting guerilla activity in Kerala, Tamil Nadu, and Delhi.
Long Rich Technologies and Morris Trading Solutions, both situated in Bengaluru, were raided.
Malayalam Actor’s Company Also Raided
Unni Mukundan Films Pvt. Ltd was also raided by the Enforcement Directorate. Unni Mukunandan, a Malayalam actor, and Nextel Group control the company.
Mukunandan, on the other hand, denied any involvement in the fake bitcoin scheme.
The ED has questioned Mukunandan regarding the source of monies invested in his ventures, according to him.
31 Year Old Young Man Is Kingpin
The ED has identified a young man named Nishad, a resident of Kerala’s Mallapuram area, as the scheme’s mastermind. According to ED officials, actor Mukunandan has a romantic relationship with Nishad.
He, on the other hand, refused to reveal the nature of the relationship. Nishad was charged with defrauding and conducting chit fund schemes in Kannur and Mallapur by the police last year.
Following that, the ED began looking into the case. Nishad was apprehended by the police, but after being released on bail, he departed the country.
The coin’s promoters took the money and invested it illegally in immovable properties in Kerala, Tamil Nadu, and Karnataka, notably in real estate, without proving any source of income,” according to an ED source.
A Ponzi scheme was also run by the suspected perpetrators. Many investors resorted to the cops after the corporation ceased paying the promised earnings.
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People May Ask
Is Cryptocurrency Fake Money?
Nonetheless, the cryptocurrency has some characteristics of a fiat money system. It is extremely rare and cannot be duplicated. A double-spend is the only technique to make a fake bitcoin.
Is Investing In Cryptocurrency Safe?
Investing in crypto assets is risky, but it can also be incredibly lucrative. If you want direct exposure to the demand for digital money, cryptocurrency is an excellent investment, while stocks of firms with cryptocurrency exposure are a safer but perhaps less rewarding alternative.
Why Is Cryptocurrency Bad?
The possibility of fraud and theft exists. While some cryptocurrencies are legitimate, they also carry the risk of theft and fraud. Furthermore, because cryptos are so popular, there are investment plans centered around them.
Is There A Future For Cryptocurrency?
According to analysts, the global cryptocurrency industry would more than triple in value by 2030, reaching roughly in billion. Investors, businesses, and brands can’t ignore the growing wave of crypto for long, whether they want it or not.
Can Cryptocurrency Fail?
Despite the pandemic, according to the website CoinMarketCap, there are already more than 11,000 cryptocurrencies in existence, up from around 6,000 in 2020. “Nothing is too big to fail,” argues former neurologist Niederhoffer, “but Most assume Bitcoin’s harshest detractors have never used it to conduct a transaction.”
Will Cryptocurrency Survive?
According to Nolan Bauerle, research director at CoinDesk, 90% of today’s cryptocurrencies will still not survive a market crisis. Even bitcoin, the most valuable and widely used cryptocurrency in the world, suffers from scalability challenges such as high transaction fees and slow networks.