ED’s Sting Operation Unveils Cryptocurrency Scam: Assets Seized, Investigation Unfolds
(Judicial Quest News Network)
7, June 2024, New Delhi: In a dramatic turn of events, the Directorate of Enforcement (ED), Delhi Zonal Office, launched a series of search operations on June 6, 2024, targeting Prafful Gupta and accomplices across multiple locations in Delhi, Haryana, and Kanpur (UP). This concerted effort was in connection with a sophisticated online fraud scheme perpetrated against a foreign national.
The investigation was sparked by an FIR lodged by the CBI against Prafful Gupta and others involved in the scam. According to the FIR’s narrative, the victim was duped into transferring her investments from a traditional bank account to a cryptocurrency wallet under false pretenses of security concerns. The perpetrators gained unauthorized access to her computer, created a cryptocurrency account in her name, and coerced her into transferring a staggering USD 400,000. However, upon later inspection, the victim discovered that her funds had vanished into thin air.
The ED’s meticulous investigation uncovered a complex web of deceit. Cryptocurrency from the victim’s account was systematically funneled to Prafful Gupta and his mother, Sarita Gupta, through a labyrinth of transactions. Subsequently, the ill-gotten gains were liquidated and routed through fictitious entities within India. These sham entities, acting as conduits, further dispersed the funds into thousands of accounts with fabricated Know Your Customer (KYC) details.
During the search operations, a treasure trove of digital evidence was seized, shedding light on the intricate workings of the scam. Additionally, proceeds of crime amounting to Rs. 7.25 Crore, locked in Fixed Deposits with banks, were frozen, while jewelry valued at Rs. 35 Lakh was confiscated.
As the investigation progresses, ED remains steadfast in its pursuit of justice, leaving no stone unturned to unravel the intricate layers of this cryptocurrency scam and hold the perpetrators accountable for their actions.
