Morris coin crypto scam: ED attaches ₹14 crore-assets; total attachment worth over ₹50 cr

In a key development in the Morris coin cryptocurrency cheating scam, the Enforcement Directorate (ED) on July 11 has attached more assets worth Rs 14 crore, taking the total attachment in the case to Rs 50.72 crores till date.

According to the ED, the attached assets include the money in the bank accounts of Nishad and Hasif K's company, Fly Using Me Mobile LLP, as well as immovable properties owned by Nishad K's associates that were bought with the proceeds of crime.

A hospital in Kochi, 52 acres of agricultural land in Tamil Nadu, and the balance of the Fly With Me App bank account are among the properties that are attached. Under the 2002 Prevention of Money Laundering Act (PMLA), the properties were seized.

A few months ago, the ED attached properties worth over Rs 36 crore in the Morris coin scam case, where reportedly over one million people may have been cheated.

Morris Coin Scam case

On the basis of numerous FIRs against Kerala-based businessman Nishad K. and other individuals against whom cases were registered in various police stations for cheating people under the guise of providing high returns of 2% to 3% per day to the investors, ED opened a money-laundering probe.

In order to launch the Morris Coin cryptocurrency, Nishad K collected deposits from investors via an initial coin offering similar to an initial public offering, through his many companies, including Long Rich Global, Long Rich Technologies, and Morris Trading Solutions, the ED learnt during the investigation carried out under the Prevention of Money Laundering Act, 2022 (PMLA).

The ED stated that Investors were impressed by conducting promotional events in the presence of celebrities, introducing the investors to flashy websites by provision of e-wallets to each investor via web-based applications. "The amounts so collected from investors were then transferred into the bank accounts of Nishad K and his firms. Subsequently, the collected amounts were layered into the shell companies," it added.

Abdul Gafoor, the MD of Stoxglobal Brokers Pvt Ltd, was detained by the ED earlier this year on March 24. On May 21, this year, a prosecution case was also filed against the six accused persons before the Special Court PMLA on Kozhikode.

(With inputs from ANI)

Image: PTI