The Bureau of Enforcement (ED), the financial investigation agency of India, stated that at least 900 people paid to participate in the so-called “initial issuance of tokens” (ICO, similar to stocks) for a non-existent cryptocurrency, Morris Coin. The concept of an IPO in the market). The investigation agency estimates that the scam initiated by Nishad, a 31-year-old man in Kerala, involved illegal income of more than 12 billion Indian rupees
The main criminal in the fraud case: Nishad
According to reports, Nishad established a shell company in 2020, when India was implementing its first epidemic lockdown. The victim paid for the so-called “Morris Coin” and was told that the virtual currency was listed on a cryptocurrency exchange called Franc Exchange in Coimbatore. Once the currency was launched on domestic or international trading platforms, The principal invested by them will be tripled in profit.
“Morris Coins” false advertising, claiming that 10 Morris coins have a maximum investment return of 90,000 rupees in 300 days
An ED official told the Indian Express, “10 Morris coins are priced at 15,000 Indian rupees (US$201) and have a lock-up period of 300 days. These currencies are fake. The founders of cryptocurrencies took the money and raised funds illegally. The proceeds were used to purchase real estate, especially real estate, in the Indian states of Kerala, Tamil Nadu and Karnataka, but no source of income was registered.”
According to the report, in November last year, the Kerala police received multiple complaints of deception and fraud, and all the victims were deceived by a company called Longrich Technologies.
During this period, the man was also accused of committing a Ponzi scheme. After the company stopped transferring promised returns, many victims turned to the police for help. The police realized that the company had defrauded individuals in various Indian states, including Tamil Nadu and Karnataka.
“Morris Coin” website login page
ED has confirmed that 31-year-old Nishad is the principal culprit of the fraud. He is from Malapuram County in the state of Kerala in southern India. Last year, the Kannur and Malapuram district police registered several cases against Nishad and other participants in accordance with Article 420 (Deception) of the Indian Criminal Code and the Bonus and Currency Circulation Plan (Prohibition) Act. ED took over a suspected money laundering case.
According to sources, the scam actors, including Nishad, have no financial background or educational qualifications, but refused to disclose the names of other suspects. The source also said, “They have shell companies in Kerala, Tamil Nadu, and Karnataka. They are pretenders, boasting that they have connections with celebrities from all walks of life, and through promotional activities Attracting easily fooled investors, they do not have any financial support. Since our investigation is ongoing, we cannot disclose more information about people connected with cryptocurrency fraud at this stage.”
The report pointed out that Nishad had left India after obtaining bail from the Kerala High Court.