Under 100 Words: A Compact Summary
The Enforcement Directorate filed charges against 299 entities, including 10 individuals of Chinese origin, for alleged cryptocurrency fraud. The case involves the Cyber Crimes Unit’s FIR and illegal activities such as online gaming and Bitcoin mining, resulting in substantial seizures (Crypto Mining Case).
- On Wednesday, the Enforcement Directorate announced the filing of a charge sheet under anti-money laundering laws against 299 entities, including 10 individuals of Chinese descent.
- The investigation is connected to the alleged defrauding of investors through the pretext of mining cryptocurrencies like Bitcoins.
- A special court in Dimapur, Nagaland, acknowledged the prosecution complaint filed under the Prevention of Money Laundering Act (PMLA) on Tuesday, as stated by the federal agency.
- The accused include a total of 299 entities, comprising 76 Chinese-controlled entities with 10 directors of Chinese origin and two controlled by other foreign nationals, according to the agency’s statement.
- The money laundering case pursued by the Enforcement Directorate (ED) originated from an FIR filed by the Cyber Crimes Unit of the Kohima Police (Crypto Mining Case).
- The Kohima Police had charged several individuals under the Indian Penal Code and the Information Technology Act, accusing them of deceiving unsuspecting investors with promises of extraordinary returns through the mining of Bitcoins and other cryptocurrencies.
- The police asserted that the accused utilized a mobile phone application called “HPZ Token” to defraud investors. According to the ED, various “shell entities” with “dummy” directors opened bank accounts and merchant IDs to facilitate the “layering” of the proceeds of the alleged criminal activities (Crypto Mining Case).
- The funds in question were allegedly obtained “fraudulently” through illegal online gaming, betting, and investments in Bitcoin mining, as asserted by the Enforcement Directorate (ED).
- The ED claimed that investors were promised returns of Rs 4,000 per day for three months with an initial investment of Rs 57,000. However, after an initial payment, the accused reportedly requested additional funds from investors.
- As part of this case, the ED conducted searches across the country, resulting in the seizure of immovable assets and deposits totaling Rs 455 crore (Crypto Mining Case).
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