ED Discovers 26 Fraudulent Crypto Sites
The Enforcement Directorate (ED) uncovers a massive fraud of 26 fake websites that attracted investors in different states in India and abroad. Those websites were extremely clever; they had the appearance of legitimate investment platforms, with high returns, and these returns were so high that one would think they were too good to be true, which was the case with them.
This was a scam that operated between goldbooker.com and metaaibox.com, where the tricksters lured the unsuspecting victims with their claims of high returns and embezzled the money. Investors became enticed by the websites, which were highly attractive, as well as the counterfeit endorsements and social media conversations.
The investigation conducted by the ED demonstrates a mixture of trust, greed for money, and internet malpractices that placed ordinary investors in the wrong spot. Who will have time to prepare a crypto trap warning before it is too late?
How Investors Were Targeted
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Target Audience: The accused targeted foreign nationals as well as Indian citizens.
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Mode of Operation: Collected funds under the guise of investments, mostly in cryptocurrency, via specially designed fraudulent websites.
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Websites Used: Platforms included goldbooker.com, fincorp.com, wozur.com, theapexpower.com, mygoldrev.com, cryptobrite.com, cryptexify.com, goldxcapital.com, hawkchain.com, cubigains.com, paymara.com, bitcodeals.com, hackandpool.com, turbominers.com, growmore.com, bitminerclub.com, bitrobix.com, primetrades.com, zylotrade.com, cryptobtctrade.com, cryptogames24hrs.com, hydrominers.com, bitleeds.com, bixotrade.org, jumboticket.network, and metaaibox.com.
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Investor Lure: Promised quick and high returns to attract unsuspecting investors.
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Deceptive Tactics: Used photographs of reputed crypto experts and famous personalities without consent to promote their schemes.
How The Scam Trapped Investors
The way the syndicate operated was to attract and catch the unaware investors. At first, the early investors were paid with small returns, which built up a false trust and system of credibility around them, quite similar to a classic MLM-style setup.
The swindle made the victims increase their investments and even encourage their friends and families to come in. To further increase the fraud’s reach, the crooks made very heavy use of social media platforms, which included Facebook and Instagram, as well as WhatsApp and Telegram, posting eye-catching pictures, creating phony endorsements, and offering referral bonuses to lure more people into the trap. Through a blend of psychological manipulation and digital marketing, the perpetrators were able to grow their victim pool and take huge amounts of money under the pretense of legit cryptocurrency investment.
Moving And Laundering Proceeds Of Crime
Further, the ED said the accused created multiple crypto wallets, foreign bank accounts, and shell companies to collect the Proceeds of Crime (POC). Funds were routed into India through hawala channels, accommodation entries, and peer-to-peer (P2P) crypto transfers.
“The accused also utilised the POC to create assets in India and abroad,” the ED said, adding that some of the 26 websites were created and used specifically to execute the above-mentioned modus operandi.
Long-Term Operations And Asset Acquisition
The agency noted that the syndicate has been operating since 2015, generating POC largely in the form of cryptocurrency. These proceeds were either used directly in crypto transactions or converted into cash and bank balances through P2P crypto transfers using certain platforms.
“The POC generated in this way has been utilised by the accused persons in acquiring movable and immovable properties in India and abroad,” the ED added.
Here are 5 practical steps you can take to guard yourself against scams, primarily those involving investments or the internet:
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Verify Before Investing: Never invest without confirming the legitimacy of the websites, businesses, or investment platforms. Prior to any monetary transaction, get information about the official registration, reviews, and regulatory approvals.
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Beware of Unrealistic Returns: A very high or “guaranteed” return offer should be considered a warning sign. Genuine investments will not promise huge profits with no risk at all.
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Check for Authenticity: Don’t get trapped in schemes that use phony endorsements or celebrity images. Authenticate such claims through different sources and do not depend solely on social media buzz.
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Protect Personal and Financial Data: Always disclose sensitive information such as bank account numbers, passwords, or crypto wallet keys only to trusted parties. Implement two-factor authentication wherever possible.
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Stay Educated and Skeptical: Familiarize yourself with common scams, Ponzi schemes, and online fraud tactics. Always question urgent or aggressive requests, and notify authorities about any suspicious activities.
(With Inputs From ANI)
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Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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