8 years after expose, ED raids crypto scam kingpin's properties, seizes Rs 1 crore

The Enforcement Directorate searched sites in Mumbai and Thane in the Money Trade Coin case first exposed by India Today's Operation Bitcoin in 2018.

In Short

• ED probes 2018 multi-crore crypto fraud linked to Money Trade Coin
• Rs 1 crore cash seized in Mumbai, Thane raids under PMLA
• MTC promised 10-20 times returns, fooled investors with fake govt links

A 2018 India Today investigation into a multi-crore cryptocurrency fraud has now been followed by an Enforcement Directorate (ED) probe, with the agency conducting searches at multiple locations in Mumbai and Thane and seizing around Rs 1 crore in cash and incriminating material.

The ED has launched a money-laundering investigation into the cryptocurrency investment scam that was first exposed by India Today TV’s special investigation, ‘Operation Bitcoin’, in February 2018.

The case centres on Money Trade Coin (MTC), an unrecognised cryptocurrency allegedly used to lure investors with promises of extraordinary returns.

The ED said the fraud involved approximately Rs 113.10 crore between August 2017 and April 2018, while the amount invested by victims has previously been estimated at around Rs 300 crore.

The agency conducted searches on August 12 at multiple premises in Mumbai and Thane under the Prevention of Money Laundering Act (PMLA).

Its action is based on an FIR registered by Thane City Police against Amit Madanlal Lakhanpal, Taha Hafiz Qazi, Sachin Vasant Shelar, Komal Bhimrao Shirsath and others.

INDIA TODAY'S 2018 MTC EXPOSE

The ED probe comes more than eight years after India Today TV and AajTak exposed the racket through ‘Operation Bitcoin’.

In February 2018, undercover India Today reporters posed as prospective investors and approached the Thane office of Flintstone Group, linked to the MTC operation.

When the reporters indicated that they were willing to invest crores of rupees, company representatives allegedly made a series of extraordinary promises.

Digamber Jangle, who presented himself as a senior MTC official, claimed he could facilitate an escrow account and even help investors obtain citizenship of a Caribbean country.

Jangle also claimed that MTC was in direct contact with the governments of Antigua and Barbuda and suggested the cryptocurrency could soon receive legal-tender status in countries in the region.

The India Today investigation found that such claims were being used to create an impression of legitimacy around the cryptocurrency and persuade investors to put in large sums of money.

MTC was marketed with promises of multiplying investments by 10 to 20 times within four to six months according to the investigation.

POLICE CASE AFTER INVESTIGATION

Following the India Today-AajTak investigation, Thane Police registered a case in June 2018 against Lakhanpal and his associates.

The police claimed that Lakhanpal, owner of the Flintstone Group, and his associates had launched MTC and collected crores of rupees from investors.

At the time, then Thane Crime Branch Police Inspector Nitin Thakre said investigators were conducting raids at offices in Thane and Mumbai to recover records and documents linked to the alleged fraud.

The investigation also brought Jangle under scrutiny. India Today had captured him on camera while he made claims about the cryptocurrency and investment opportunities.

He was also suspected of being among the alleged masterminds of the operation.

Some police officials were also suspected of involvement in the racket, according to the investigation at the time.

ED FINDS MORE SCHEMES, MANIPULATED MTC RATES

According to its statement on Thursday, the ED's investigation has uncovered several schemes and platforms allegedly used in connection with MTC.

The agency said Lakhanpal conducted seminars in Delhi, Pune and Nashik, where he falsely presented himself as an official of the Finance Ministry and promised investors substantial returns from MTC.

The ED said that investors were also promised government recognition for the cryptocurrency.

Subsequently, schemes and exchanges including Coin Deposit Ratio, MTC Banque, MTCX India and Cryptozaniya were allegedly introduced.

According to the agency, MTC prices were manipulated through these platforms, while trading and withdrawal facilities were eventually stopped, leaving investors unable to recover their money.

The ED said its investigation has found that Lakhanpal and his associates left India after acquiring passports of Antigua and Barbuda.

The agency said Lakhanpal is currently believed to be living in Dubai a fake identity.

- Ends