- June 17, 2024
- Posted by: [email protected]
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The Indian Enforcement Directorate (ED) has uncovered a cryptocurrency Ponzi scheme involving HR crypto coin, seizing assets, and freezing accounts. The scheme promises investors 15% annual rates and a 30% referral bonus, luring them with the promise of quick riches. The allure of 15% annual returns and a 30% referral bonus was too good to be true. This spiked the suspicion of the ED and led to an investigation and crackdown on the illegal operations.
On Friday, India’s Enforcement Directorate (ED) announced the search operations executed by the Kochi Zonal Office on June 11 at different locations in Chhattisgarh, Kerala, and Maharashtra. Promoters and leaders of Highrich online groups faced raids by Indian authorities, citing the Prevention of Money Laundering Act (PMLA) of 2002.
The ED’s investigations revealed that what looked to be legal digital ID purchases were actually a Ponzi scheme. Highrich Group, under scrutiny for its recruitment-based scheme, typical of all Ponzi schemes, lacked a real business and relied on commissions from investors and recruitment to sustain its operations. The company was found to be operating a Ponzi scheme, selling digital IDs for website access, and offering commissions for recruitment and referrals.
According to Times of India, earlier this year, as of February 20, 2024, Highrich Operations MD and his wife had been probed for fraud cases.
The alleged financial scam, one of the largest in the state, demanded a thorough investigation, as the ED argued in its counter-affidavit against the bail plea. The agency painted a picture of a deceptive operation cloaked in the guise of grocery sales. The accused, it claimed, had lured unsuspecting investors with promises of high commissions, all while operating an illicit “money circulation scheme.” Adding another layer to the deception, the ED alleged that the accused were involved in international cryptocurrency trading, raising further concerns about the scope and sophistication of their operation.
The latest raids by the ED yielded a significant haul, including the freezing of Rs. 32 crore ($3.9 million) in bank accounts linked to the company and its promoters. Authorities also seized Rs. 70 lakh ($85,365) in cash, jewelry, and four vehicles. Further investigation uncovered Rs. 15 crore worth of immovable property allegedly acquired through illegal means.