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New Delhi:
The Enforcement Directorate (ED) has intensified its crackdown on multi-level marketing (MLM)–based cryptocurrency scams, seizing assets worth ₹4,800 crore linked to fraudulent investment schemes operating across the country.
According to officials, these schemes used a network-marketing and referral-based structure to lure investors with promises of unusually high and assured returns through cryptocurrency investments. Investigations revealed that most of the platforms had no legitimate business model or real product, and instead relied heavily on continuous recruitment of new members.
The ED stated that these operations closely resembled Ponzi and pyramid schemes, where funds collected from new investors were used to pay returns to earlier participants. Such models inevitably collapse once recruitment slows, leaving the majority of investors facing heavy financial losses.
Authorities found that many of the scam operators promoted unverified or self-created digital tokens, exaggerated profit claims, and used aggressive marketing tactics, including social media promotions and offline seminars. In several cases, money was routed through complex layers of accounts and crypto wallets to evade detection.
The seized assets include bank balances, cryptocurrency holdings, immovable properties, and luxury items, officials confirmed. Multiple entities and individuals involved in running these schemes are currently under investigation for violations of the Prevention of Money Laundering Act (PMLA).
The ED has warned the public to remain cautious of crypto investment platforms that guarantee returns or emphasize recruitment-based earnings. “Any investment scheme that promises fixed profits with minimal risk, especially in the volatile crypto market, should raise immediate red flags,” an official said.
With digital assets gaining popularity, enforcement agencies have reiterated the need for greater awareness and due diligence among investors to avoid falling prey to such fraudulent schemes.
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