On March 28, the Directorate of Enforcement (ED) arrested a man, Abdul Gafoor, one of the accused in the Morris Coin fraud case that exploded in India’s crypto scene in January 2022 and is still one of the biggest scams in the country.
ED is the economic intelligence wing of the Ministry of Finance, and tracks economic crime at a high rate. It took over the case in 2021 after several previous cases were filed against Morris Coin and kingpin Nishad K.
Gafoor is a director of a shell company called Stox Global Brokers Private Limited, and he often diverts investor money to other shell entities. Arrested under the Money Laundering Prevention Act (PMLA), Gafoor has been held in court custody, and the ED is likely to ask the court to remand Gafoor for interrogation, he said. report in the Indian media.
Background of the Case
The original Morris Coin fraud case come to light in September 2020 when one of the victims complained to the local police in Indian province of Kerala. The complaint was related to the ‘300 -day Morris Coin Investment Plan’, and the kingpin of the fraud, Nishad K, was arrested and then given bail.
Police at the time were unable to determine the magnitude of the fraud. After bail, Nishad became without a trace and reportedly left the country. ED, in an attempt to track him down, has seized property in India.
In November 2021, police arrested seven people after completing an investigation and learning that Nishad, 31, had defrauded at least 900 investors up to $ 160 million.
He works as a collection and channel agent for Nishad, and his bank account details show that he will transfer Rs 90-100 crore (approximately $ 1.3 billion) to different accounts associated with Nishad. Police found that the money collected as an investment in the ICO of Morris Coin, a non -existent digital coin, was transferred to a shell company and invested in real estate, among other non -transferable assets.
ED’s investigation to date has revealed that investors have been asked to invest 15,000 rupees (approximately $ 190) for 10 Morris Coins, which will have a key period of 300 days. During that time, investors will receive a 3% monthly return.
Once the coin is listed on the exchange, its price will boom like bitcoin, Morris Coin agents promised investors. This continued generally during the 2020 key period until Nishad was arrested in September of the same year.
Another Crypto Fraud Case
In the past 15 days, this is the third crypto fraud case reported in the Indian media. On March 27, CryptoPotato noted that police in the Indian province of Gujarat arrested four people, including a couple, for deceiving entrepreneurs by asking them to invest in bitcoin.
In other cases, former top police officers and technical experts arrested in Maharashtra province for stealing crypto coins during the probe of a case in which they assisted the police investigation.