The Enforcement Directorate (ED), a finance enforcement agency in India, seized 320 million Indian rupees in bank funds and an additional 7 million rupees in cash, as part of a crypto-based money-laundering investigation against HighRich Online Group during the searches in Maharashtra, Chhattisgarh, and Kerala states of India.
According to ED officials, HighRich Online Group is reportedly engaged in cryptocurrency trading and Ponzi-type marketing schemes. The company offered a 30% incentive for bringing in new investors, along with 15% yearly returns, in this scheme. According to the agency, investors in the multi-level marketing scheme contributed approximately ₹1,500 crore, but there was no product involved in trade.
ED discovered that the company’s leaders and promoter traded cryptocurrencies and sold HR Crypto Coin, the company’s cryptocurrency.
The searches, which were carried out at 14 sites, also identified additional criminal activities totaling ₹15 crore. The company, its promoters, and their families were the rightful owners of the frozen funds. Apart from the cash of ₹70 lakh, jewelry, and four cars were also seized.
The company sold memberships in the form of digital IDs, which members resold for commissions, according to the investigation that was initiated in response to several complaints.
“There is no real underlying business of sale of goods. This is the typical modus operandi of a Ponzi scheme,” an ED source stated. Of the money raised, about ₹250 crore was distributed as rewards, and the remaining amount was misused by the promoters, KD and Sreena Prathapan, via family members and other organizations.
In January, the ED was able to track down and freeze ₹212 crore in purported proceeds of crime after searching the locations of HighRich Smartech Pvt. Ltd., HighRich Online Shoppe Pvt. Ltd., and related companies. In this case, ₹260 crore has been frozen or seized in total.
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