Enforcement Directorate intensifies crypto fraud probe in Mumbai-Thane

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Mumbai-Thane crypto fraud probe

Highlights

The Enforcement Directorate has launched an investigation into the ₹113.10 crore MTC crypto fraud in Mumbai-Thane under the Prevention of Money Laundering Act, 2002.
During the search operation, the agency seized about ₹1 crore in cash, incriminating documents, and digital devices, and uncovered seminars promising high returns.
The main accused, Amit Lakhanpal, and his associates have left India and are residing in Dubai, UAE, on Antigua and Barbuda passports; suspension of withdrawals and trading has caused heavy losses to investors.

This article was translated from the original. Read the original version by our correspondent here.

Search Operation and Basis of Investigation

As stated by the Enforcement Directorate, the Mumbai Zonal Office conducted search operations at multiple locations in Mumbai and Thane under the Prevention of Money Laundering Act, 2002. The agency initiated this probe based on an FIR by Thane City Police, which named Amit Madanlal Lakhanpal, Taha Hafiz Kazi, Sachin Vasant Shelar, Komal Bhimrao Shirsath, and others as accused.

The investigating agency states that an unrecognized cryptocurrency called Money Trade Coin, or MTC, was created and a large number of investors were allegedly lured to invest in it. It is alleged that this process led to a scam of approximately ₹113.10 crore between August 2017 and April 2018.

During the searches, the agency seized about ₹1 crore in cash, several incriminating documents, and digital devices. It also emerged that multiple seminars were held in Delhi, Pune, and Nashik, where high returns on investments were promised.

Impact on Investors and Alleged Network

The investigation also found that Lakhanpal claimed to be an official of the Ministry of Finance and falsely asserted that MTC had government approval. According to the agency, this was used to attract investors and assure them of high profits.

Subsequently, various schemes and exchanges such as Coin Deposit Ratio, MTC Banque, MTCX India, and Cryptozaniya were launched, where the price of MTC coins was allegedly manipulated. It is alleged that later, withdrawal and trading facilities were suspended, causing investors to lose both their principal and promised returns.

According to the Enforcement Directorate's investigation, Amit Lakhanpal and his associates have left India and are residing in Dubai, UAE, on Antigua and Barbuda passports obtained under allegedly false identities. Further investigation in the case is ongoing.

Our previous report detailed the ED's action in the alleged investment fraud case involving Jollywood Music Industries Pvt. Ltd. and DLMS Jollywood Music Pvt. Ltd. in Munger, Bihar, where the agency seized documents, bank details, and investor lists related to fund collection, alleged manipulation of payment models, and property purchases with the raised funds during searches under PMLA.

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