Authorities in India have captured a fraudster involved in a crypto scheme that defrauded investors of more than $160 million. According to the Enforcement Directorate, Abdul Gafoor was a member of the fraudsters engaged in the Morris Coin case. The investigation into the crime began in January 2020, and things have progressed since then. ED, India’s finance ministry’s intelligence branch, fights high-profile cases all around the country.
The con artist has ties to the Morris con
The issue was referred to the ED last year after several petitions and complaints were filed by investors against the scam investment operators. Investors also remarked on the CEO, Nishad K.’s, shady demeanor. The con artist works as a director for Stox Brokers, a company that launders money before passing it to other businesses.
According to authorities, the fraudster was also detained following the AML statute and will be held in police custody until trial. According to sources, the cops will ask the court to allow them custody of the con artist since he can assist them in apprehending other members of his gang.
India has a high rate of cryptocurrency fraud
After an investor filed a complaint against the fraudster in September 2020, the media first reported the situation involving the crypto company. The company’s strategy, which lasted 300 days, was believed to be the source of the complaint. Authorities moved quickly and invited the CEO, Nishad, for a meeting before releasing him on bond. During this time, the police were oblivious to the gravity of the crime, believing it to be a minor offense.
Nishad departed the nation days after being granted bail, disappearing off the police radar. The police arrested seven persons linked to the crime after concluding their investigations. According to the authorities, the crooks defrauded naive investors of millions of dollars. The seven persons detained worked for the firm as collection agents.
The monies would be deposited in the investors’ accounts, who would then transmit them to Nishad. In the recent few months, there has been an increase in the number of cases of cryptocurrency fraud in India. Four guys were detained for Bitcoin fraud a few weeks ago. Another example included a police officer and another individual arrested for taking Bitcoin from a safe deposit box.