Dehradun: A Special PMLA Court in Dehradun sent a key accused in the BTC Fund Scam, which allegedly involved illegal sale of cryptocurrency and cheating with investors, to four days of ED custody, an official said on Saturday.
The Directorate of Enforcement (ED), Dehradun Sub-Zonal Office, had sought the custody of Hemant Ishwar Sharma before the Special Court after the probe agency conducted searches at four locations under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
During the search, incriminating documents and electronic devices were seized. Sharma has been arrested in connection with the case.
The ED initiated an investigation based on an FIR registered by Police Station Rajpur, Dehradun, under Section 420 of the IPC, 1860, against Sharma for cheating investors through the website BTCFUND.IS, the ED said.
A similar FIR was also registered by Police Station Dineshpur, District Udham Singh Nagar, Uttarakhand, under various provisions of the IPC, 1860, against Hemant Ishwar Sharma and others, in relation to the same fraudulent scheme, the ED said.
Investigation revealed that Sharma fraudulently collected substantial sums of money from members of the public under the pretext of investing in Bitcoin through the website BTCFUND.IS, which was under his control, the ED said.
He lured investors by promising high returns and falsely claimed that several foreign nationals were associated with the company, thereby projecting the scheme as credible and internationally backed, the statement said.
Investors from across India were induced to deposit funds on the platform on these false representations, it said.
The ED investigation established that the Proceeds of Crime collected from investors were diverted by the accused to his personal bank accounts and subsequently invested in immovable properties registered in his name, constituting an offence of money laundering under the PMLA, 2002.
The ED has provisionally attached movable and immovable properties worth Rs 4.56 crore (approx.) representing Proceeds of Crime, in the form of land and bank account balances belonging to Sharma.
It has further come to light during the investigation that the accused attempted to alienate the attached assets, in violation of the attachment orders, it said.
(IANS)
