Kerala

Heighrich Fraud: Investors’ Money Moved Massively into Cryptocurrency; FEMA Charges Likely

Exploring Allegations of Massive Cryptocurrency Transactions and Potential FEMA Charges in the Heirich Fraud Scandal

Kochi: The owners committed Highrich cryptocurrency fraud of Rs 1,157 crore under the guise of online multilevel marketing businesses, apparently converting customers’ money into large quantities, according to an inspection by the Enforcement Directorate (E.D.). However, Heighrich owner K.D. Pratapan denied extensive investment in cryptocurrency during questioning by the E.D.

Challenges in Tracing Cryptocurrency Transactions

Heighrich Group has a cryptocurrency business called ‘H.R.C. Crypto.’ Highrich Smartech Pvt Ltd is a company registered for cryptocurrency transactions. They also allegedly accepted client deposits by tempting them with promises of huge profits through cryptocurrency. 

Investigation and Potential Regulatory Implications

Initially, the investigation team believed from their statements that they did not use this money for cryptocurrency. However, on the last day of E.D. investigation team received hints about cryptocurrency transactions. Based on this, the E.D. authorities questioned Heighrich owner K.D. Pratapane on Thursday.

As the investigation team clarifies, all information about Heighrich’s cryptocurrency dealings will come out soon. In addition to money laundering, the Foreign Exchange Act (FEMA) may also be involved in this case if there is strong evidence of cryptocurrency transactions.

Meanwhile, the investigating team questioned Vijesh Pillai, who handed over the O.T.T. platform to the Hrighrich Group for four and a half crore rupees for the third consecutive day. More people will likely be summoned for questioning in the case over the coming days.

In conclusion, authorities are ramping up investigations into potential cryptocurrency fraud and money laundering by companies like Heighrich. As virtual currencies become more mainstream, regulators will likely increase oversight to prevent illicit activities. The outcome of this case could set an essential precedent for enforcement against misconduct in India’s cryptocurrency sector.

Rohit Sharma

Rohit Sharma is a seasoned Political Journalist with a deep passion for Indian Politics. With over a decade of experience in the field, he has established himself as a trusted… More »

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