The Enforcement Directorate (ED), Shillong sub-zonal office, has provisionally attached movable properties worth Rs 1.06 crore under the Prevention of Money Laundering Act (PMLA), 2002, in connection with its ongoing investigation into the 'Global Media App' fraud case. The case involves large-scale cheating of investors through a fraudulent online earning and investment scheme.
Investigation Initiated on FIR
The ED's investigation was launched on the basis of an FIR registered by Madanriting Police Station in East Khasi Hills district on a complaint alleging cheating through the 'Global Media App' mobile application.
Ponzi Scheme Under Guise of Advertising
ED investigation revealed that the accused persons operated the 'Global Media App' as a Ponzi-style investment scheme under the guise of an online advertising platform promising daily passive income to users for watching advertisement videos. Users were induced to upgrade to various VIP membership plans by paying substantial amounts with assurances of high daily returns and referral commissions.
Use of Telegram and Cryptocurrency
During the investigation under PMLA, 2002, it was revealed that the fraudsters extensively promoted the application through a Telegram channel administered by individuals using foreign mobile numbers, and collected funds from gullible investors through bank transfers, UPI transactions, and cryptocurrency wallets. The scheme remained operational from June 3, 2022, to October 12, 2022, after which the perpetrators abruptly shut down the application and absconded with the collected funds.
Proceeds of Crime Estimated at Rs 45.33 Crore
The ED investigation has established that Proceeds of Crime amounting to approximately Rs 45.33 crore were generated through the fraudulent scheme. The probe identified multiple bank accounts, merchant IDs, payment gateway accounts, and crypto wallets used for collection and layering of the proceeds of crime.
Layering Through Mule Accounts
It was further revealed that funds collected through the fraudulent application were routed through various layers of bank accounts and merchant entities enrolled in payment gateways, which are mule in nature. Investigation also revealed the use of cryptocurrency wallets operating on the TRON blockchain network for collection and transfer of UST tokens.
Enquiries with Banks and Crypto Exchanges
During investigation, ED conducted enquiries with various banks, payment gateways, Google, Telegram, and cryptocurrency exchanges. Analysis of financial transactions and blockchain transfers led to identification of proceeds of crime presently available in various bank accounts, which have been provisionally attached under Section 5 of the PMLA, 2002.
International Dimension
The investigation has further established that the 'Global Media App' fraud has a significant international dimension. The Telegram channel through which the application was promoted was administered by four individuals whose mobile numbers were registered in Cambodia (+855) and Malaysia (+60), and the Gmail accounts used to operate the back-end of the App were also registered with 'Terms of service country: Cambodia', indicating that the operational control of the scheme was located outside India throughout the operative period.
Cryptocurrency Trail
A substantial component of the Proceeds of Crime, equivalent to approximately Rs 2.45 crore, was collected directly from victims in the form of UST (Tether) tokens routed through the TRON blockchain and thereafter onward to user accounts on a foreign-domiciled cryptocurrency exchange. KYC particulars of the immediate end-recipients on the said exchange have been obtained, and the onward movement of the funds is being traced.
