In a significant development, the Directorate of Enforcement (ED) has provisionally attached movable and immovable assets valued at Rs. 3,43,68,376/- in the Morris Coin Crypto Currency Case, which pertains to a cheating case under the Prevention of Money Laundering Act, 2002. This provisional attachment was executed on September 7, 2023.
The attached assets encompass the balance in bank accounts belonging to M/s Flywithme Mobile LLP, which is a partnership firm associated with individuals Nishad K and Hasif K. Additionally, immovable property owned by Ansari P, an associate of Nishad K, has also been provisionally attached as part of this action.
The investigations conducted by the ED were initiated based on FIRs registered in various police stations against Nishad K and others, who were allegedly involved in deceiving individuals by promising high returns of 2-3% per day to investors. The modus operandi involved Nishad K collecting deposits from investors through several of his firms, including M/s Long Rich Global, M/s Long Rich Technologies, and M/s Morris Trading Solutions. These deposits were ostensibly collected as part of an Initial Coin Offer for the launch of Morris Coin Crypto Currency.
The funds collected from investors were then purportedly redistributed to them in the form of profits, employing a ponzi scheme strategy initially. However, the payments to investors were subsequently halted. It was determined that the accused individuals had generated profits of approximately Rs. 54 Crore through this illegal activity.
Prior to this development, the ED had conducted multiple searches across the country at the premises of Nishad K and his associates. During these searches, approximately Rs. 21 lakh in cash, along with various incriminating documents, was seized. Furthermore, Abdul Gafoor, the Managing Director of M/s Stoxglobal Brokers Pvt. Ltd and an associate of Nishad K, was arrested on March 24, 2022.
Movable and immovable properties linked to the firms and associates of Nishad K, valued at approximately Rs. 50.72 Crore, had been provisionally attached earlier and were subsequently confirmed by the Ld Adjudicating Authority. Additionally, the ED filed a Prosecution Complaint against six accused individuals in this case before the Special Court, PMLA, Kozhikode, on May 21, 2022.