Bengaluru: The Directorate of Enforcement (ED) uncovered a cryptocurrency fraud with an estimated value of 35 million USD (over Rs 300 crore), exposing a network of self-styled crypto influencers who duped foreign investors by promising heavily discounted digital tokens that were never fully delivered.ED initiated investigation under Prevention of Money Laundering Act (PMLA), based on an FIR registered by cybercrime police station in South Andaman following a complaint filed by a Dutch entity.Investigation revealed the funds collected through cryptocurrency wallets were allegedly routed to Ravindra K, a Bengaluru-based man believed to be the mastermind behind over-the-counter (OTC) crypto deals.According to investigators, the accused lured investors into high-value OTC cryptocurrency deals by promising discounted allocations of popular virtual digital assets, including MultiverseX, Kava, BEAM, GRASS, SUI, VANA and AGLD. While smaller transactions were initially honoured to build credibility, the accused stopped delivering the promised tokens after receiving investments worth millions of dollars.ED named Mohammed Waseem, Saurabh Diwan and Vaibhav Gupta as key accused. Investigators said the trio allegedly used private Telegram groups, WhatsApp, Instagram, websites and in-person meetings to gain the confidence of investors by projecting themselves as influential figures in the cryptocurrency industry.Acting on intelligence gathered during probe, ED officials carried out searches at multiple locations on July 18-19, uncovering a sophisticated international investment fraud.According to the agency, the accused called themselves “key opinion leaders” (KOLs) in the crypto ecosystem and claimed to have exclusive partnerships with blockchain developers, enabling them to offer discounted token allocations before public launches. They allegedly persuaded unsuspecting investors to transfer large sums in virtual digital assets (VDAs) by promising substantial returns before either withholding the tokens or failing to honour their commitments. The proceeds of crime were allegedly diverted for personal purposes such as investment in movable/immovable properties and business purposes.During the searches, ED seized digital devices, email records, cryptocurrency wallets, 8,700 USDT in VDAs believed to be linked to the fraud.Investigators said searches revealed the scam’s actual value is around 35 million USD, significantly higher than 10 million USD mentioned in the original FIR. The agency believes several other foreign investors and entities were cheated in a similar manner but are yet to file formal complaints.
