What happened
The Enforcement Directorate has opened a money-laundering probe through its Bengaluru zonal office into an alleged cryptocurrency over-the-counter trading scam. The alleged fraud is pegged at around $35 million, which is higher than the $10 million figure mentioned in the original first information report.
Investigators say the accused induced investors with promises of discounted token allocations and then failed to deliver the tokens fully after market prices rose. The Enforcement Directorate has named Mohammed Waseem, Saurabh Diwan, and Vaibhav Gupta as accused, and suspects that funds were routed to a Bengaluru resident, Ravindra K., whom it believes to be the mastermind.
Background and earlier position
The case originated from a South Andaman cybercrime complaint filed by a Dutch entity. The complaint said the entity was cheated in transactions involving virtual digital assets, a category that includes cryptocurrencies and related tokens.
The allegation fits a wider pattern in crypto-related fraud cases: promises of privileged access, discounted allocations, or exclusive tie-ups can be used to attract investors before delivery fails or turns partial. The Enforcement Directorate’s searches also found claims that the accused had exclusive tie-ups with blockchain developers to secure discounted allocations.
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