The Enforcement Directorate said on Wednesday it had charged 299 entities, including 10 ethnic Chinese, under anti-money laundering laws in an investigation into allegedly defrauding investors in the name of mining cryptocurrencies such as Bitcoin.
A special court in Dimapur, Nagaland, on Tuesday took up the prosecution complaint filed under the Prevention of Money Laundering Act (PMLA), the federal agency said in a statement.
A total of 299 entities were named as defendants, including 76 Chinese-controlled entities, of which 10 directors were Chinese nationals and the other two were controlled by other foreigners.
The Enforcement Directorate (ED) money laundering case stems from an FIR filed by the cyber crime wing of Kohima police.
Kohima police have arrested several people under the Indian Penal Code and Information Technology Act for allegedly cheating gullible investors by promising astronomical returns by mining Bitcoin and other cryptocurrencies.
Police said the defendants used an app (mobile app) called “HPZ Token” to “defraud” investors.
The Department of Education said bank accounts and merchant IDs were opened by various “shell entities” with “dummy” directors in order to “layer” the proceeds of crime.
It claims the funds were “fraudulently” received and used for illegal online gaming, betting and Bitcoin mining investments.
Invest Rs. 57,000, in return of Rs. The ED said it was promised daily payments of $4,000 for three months, but only paid once, after which the defendants sought new funding from investors.
In this case, the ED conducted nationwide raids and seized immovable properties and deposits worth Rs 1,000 crore. 455 crore, it was said.