
Several bank accounts and Virtual Digital Asset (VDA) wallets with cryptocurrency exchanges, such as CoinDCX, WazirX, Zebpay, and BitBns, have also been discovered by the CBI during its investigation.
NEW DELHI: The Central Bureau of Investigation (CBI) carried out raids at ten locations in seven states and Union Territories (UTs) on Friday as part of a massive crackdown against the crypto ponzi scheme scam. According to officials, the raids recovered digital assets worth approximately US$ 38,414 and cash worth Rs 34 lakh from cryptocurrency wallets.
According to them, the agency filed a formal complaint (FIR) against seven defendants in the matter of a Rs 350 crore scam before beginning the operations.
The accused were allegedly operating seven distinct modules based in Delhi, Hazaribag (Jharkhand), Bathinda (Punjab), Ratlam (Madhya Pradesh), Valsad (Gujarat), Pudukkottai (Tamil Nadu), and Chittorgarh (Rajasthan), stealing money from unsuspecting investors who were promised cryptocurrency investments, according to a senior CBI official.
“Several social media groups were promoting these ponzi schemes,” he claimed. The illicit gains from these scams were being transformed into cryptocurrencies to conceal their source, according to an examination of bank account activities and cryptocurrency wallets.
According to the sources, the CBI has claimed in the FIR that the accused had transacted more than Rs 350 crore in these schemes. They also stated that agency investigators from several teams raided premises in Delhi, Jharkhand, Punjab, Madhya Pradesh, Gujarat, Tamil Nadu, and Rajasthan.
According to the officials, the raiding teams found digital virtual assets in the accused individuals’ cryptocurrency wallets that were digitally secured for examination, totaling roughly US$ 38,414 during the searches.
Along with important digital evidence, such as seven cell phones, one laptop, one tablet, three hard drives, ten pen drives, memory cards, SIM cards, ATM/debit cards, email accounts, and numerous incriminating documents, the searches turned up cash totaling about Rs 34.2 lakh.
During its investigation, the CBI also discovered that the accused members owned several bank accounts and Virtual Digital Asset (VDA) wallets with cryptocurrency exchanges, such as CoinDCX, WazirX, Zebpay, and BitBns.
The FIR states that because the case was a component of an ongoing investigation that took place prior to the implementation of three new criminal laws last year, it was filed under Section 120-B (criminal conspiracy) of the Indian Penal Code, read with Section 420 (cheating) and Section 66D of the Information Technology Act, 2000, the officials said.
“Accused persons, acting in criminal conspiracy, have been actively floating various ponzi and fraudulent schemes, promising high returns based on cryptocurrency investments,” the CBI stated in the FIR. Additionally, they are charged with marketing, promising, and spreading misleading information in an attempt to lure investors into these unregulated deposit schemes, which function without the necessary authorization from regulatory bodies like the Reserve Bank of India (RBI).
FAQ
The Central Bureau of Investigation (CBI) uncovered a Rs 350 crore cryptocurrency ponzi scheme involving seven defendants who allegedly operated fraudulent investment modules across multiple states. The scheme promised high returns on cryptocurrency investments to unsuspecting investors but was essentially a scam.
The CBI raided ten locations across seven states and Union Territories, recovering approximately US$ 38,414 in digital assets, Rs 34.2 lakh in cash, and critical digital evidence, including mobile phones, laptops, hard drives, and cryptocurrency wallets.
The investigation revealed that the accused held Virtual Digital Asset (VDA) wallets with cryptocurrency exchanges, including CoinDCX, WazirX, Zebpay, and BitBns. These wallets were used to conceal the illicit gains from the scams.
The CBI filed an FIR under Section 120-B (criminal conspiracy) of the Indian Penal Code, Section 420 (cheating), and Section 66D of the Information Technology Act, 2000. The accused are charged with running unregulated deposit schemes, spreading misinformation, and violating regulatory norms.
The accused allegedly ran social media groups to promote their schemes, promising high returns from cryptocurrency investments. They converted the illicit gains into cryptocurrencies to hide their origins and used unauthorized deposit schemes without regulatory approval from the Reserve Bank of India (RBI).