Bengaluru: ED uncovers $35 million crypto OTC scam; digital assets worth 8,700 USDT seized
The Enforcement Directorate is investigating a $35 million cryptocurrency over-the-counter trading scam involving three individuals who allegedly defrauded investors. The accused used social media and fake promises of discounted tokens to lure victims before halting deliveries.
Why it matters
The case underscores the growing risks of unregulated cryptocurrency trading and the challenges of cross-border financial fraud.
The Directorate of Enforcement (ED), Bengaluru Zonal Office, has launched a money-laundering investigation into an alleged $35 million cryptocurrency over-the-counter (OTC) trading scam, significantly larger than the $10 million fraud initially reported in the FIR.
The probe under the Prevention of Money Laundering Act (PMLA), 2002, stems from an FIR registered by the Cyber Crime Police Station, South Andaman, based on a complaint filed by a Dutch entity alleging it was cheated in OTC deals involving Virtual Digital Assets (VDAs).
According to the ED, the accused allegedly induced investors to purchase discounted cryptocurrency tokens promising preferential allocations that were either only partially delivered or not supplied at all.
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