ED Intensifies Crypto Fraud Crackdown in Nagpur, Freezes Assets Worth Crores
The Enforcement Directorate escalated its fight against cryptocurrency frauds on January 7. Officers conducted targeted search operations at three locations in Nagpur district. These sites connected to Nished Wasnik and his associates.
How the Fraud Operated
The gang misappropriated funds from gullible investors. They promised high returns in cryptocurrency. This caused losses of at least 4.3 crore rupees. The syndicate ran an unregistered online platform called 'Ether Trade Asia'.
They promoted this platform through lavish seminars. These events took place at upscale hotels in Nagpur and other parts of Maharashtra. During these seminars, they disseminated misleading information to lure investors.
Raids Under PMLA Uncover Evidence
The raids started under the Prevention of Money Laundering Act of 2002. Investigators uncovered voluminous incriminating documents. They also seized digital devices. The action led to the freezing of bank balances exceeding 20 lakh rupees.
Additionally, the ED froze a secret personal digital wallet. This wallet held cryptocurrencies valued at 43 lakh rupees. The agency identified several benami properties worth crores. The accused acquired these properties.
Investigation Origins and Scheme Details
The agency's investigation stemmed from an FIR filed by Nagpur police. The fraudsters designed and promoted the 'Ether Trade Asia' platform. They fabricated a fraudulent binary commission scheme. This scheme carried false promises of high returns.
Innocent investors received inducements to purchase 'Ethereum' cryptocurrency. Various schemes operated under the banner of Wasnik's firm, M/s Ether Trade Asia. The amounts were then siphoned off for personal gains.
This included the acquisition of movable and immovable properties. These properties registered in the names of Wasnik and his family members. Public funds also diverted to purchase more cryptocurrency. The gang hid this cryptocurrency in digital wallets.
Scale of the Fraud and Past Actions
Sources indicate the racket misappropriated around 1,500 to 2,000 Ethereums. Each Ethereum valued at approximately 2.25 lakh rupees. The fraudsters also duped investors through cash transactions. This could inflate the total fraud to several crores more.
Former CP Amitesh Kumar busted Wasnik's gang in 2022. He highlighted how the mastermind and his aides organised extravagant events to entice victims. Investors received guidance to buy Ethereums. They then transferred them to Ether Trade Asia via digital wallets.
The gang faces implication in the abduction and murder of an aide. This occurred over transaction disputes. Authorities invoked the Maharashtra Control of Organised Crime Act (MCOCA) in the case.
