ED Attaches Assets Worth Rs 1.06 Crore in Cryptocurrency Scam Probe

The Enforcement Directorate (ED) has taken its first major enforcement action against an international cryptocurrency scam that allegedly siphoned off over Rs 45 crore from investors.

The scam operated through an online application called Global Media App, which was presented as a legitimate advertising platform but functioned as a Ponzi scheme. Victims were promised daily passive income for watching videos and were persuaded to buy VIP membership plans on the assurance of high returns and referral commissions.

According to sources, the scam ran between June and October 2022 before the operators abruptly shut down the application and disappeared with the funds. The investigation was triggered by a local complaint filed at Madanrting Police Station in Shillong.

The ED's Shillong Sub Zonal Office said that assets worth Rs 1.06 crore have been attached under the Prevention of Money Laundering Act, marking the first significant recovery in the case. The total proceeds of crime generated by the fraud amount to about Rs 45.33 crore, with efforts continuing to trace the remaining Rs 44 crore and identify the ultimate recipients of the money on foreign exchanges.

The investigation found a complex layering mechanism used to conceal the money trail, including the use of mule accounts and merchant IDs to route funds through payment gateways. The probe also revealed that around Rs 2.45 crore was collected directly from victims in the form of USDT (Tether) on the TRON blockchain before being moved to foreign cryptocurrency exchanges.

The ED has pointed out an international operational structure, with Telegram channels used to lure investors administered by individuals using mobile numbers from Cambodia and Malaysia. The Google accounts used to manage the backend of the application were also registered in Cambodia, suggesting that the scheme was being controlled from outside India.