Amit Lakhanpal, accused of defrauding investors of more than ₹113 crore through the Money Trade Coin cryptocurrency scheme in 2017-18, has been arrested in the United Arab Emirates.
His arrest was carried out on the basis of an Interpol Red Notice. Indian authorities are now preparing to begin extradition proceedings to bring him back to India.
Accused Allegedly Posed as Finance Ministry Official
Investigators allege that Lakhanpal gained investors’ confidence by posing as a Finance Ministry official and promising substantial returns on investments in Money Trade Coin.
Seminars were allegedly organised at luxury hotels in cities including Delhi, Pune and Nashik.
Investors were reportedly told that the digital currency would receive government recognition and that its value would rise significantly.
Proposal for Conducting Cyber Crisis Drill, Tabletop Exercise (TTEx) & CCMP Readiness Exercise
How Were Investors Allegedly Lured Into MTC?
The investigation has named Taha Hafiz Qazi, Sachin Vasant Shelar, Komal Bhimrao Shirshath and others as alleged associates of Lakhanpal.
Based on the police case, the Enforcement Directorate also initiated a separate investigation into suspected money laundering.
The agency alleged that the accused created an unrecognised cryptocurrency and induced investors to put money into it despite there being no legitimate government approval or regulatory backing.
Multiple Crypto Schemes and Exchanges Under Probe
Investigators found that Lakhanpal and his associates subsequently floated several schemes and alleged cryptocurrency exchanges to attract investors.
These included Coin Deposit Ratio, MTC Banque, MTCX India and Cryptozaniya.
The accused allegedly manipulated the price of MTC coins and later stopped trading and withdrawal facilities.
As a result, several investors allegedly lost both their principal amounts and the returns they had been promised.
Lakhanpal Allegedly Lived in Dubai Under False Identity
After the case was registered, Lakhanpal and some of his close associates allegedly left India.
Investigators said they obtained passports from Antigua and Barbuda.
Lakhanpal was allegedly living in Dubai under a false identity. Information about his whereabouts was subsequently shared with UAE authorities, leading to his arrest.
Wife’s Foreign Passport and Travel Also Examined
Investigators have also examined the role and movements of Lakhanpal’s wife.
According to investigators, she attempted to leave India three times during 2023-24 but was stopped at the airport following an alert issued by the authorities.
It was alleged that Lakhanpal later obtained an Antigua and Barbuda passport for his wife while abroad and sent it to India. She subsequently allegedly left the country using that passport.
₹1 Crore Seized, Assets and Transactions Under Scanner
Investigators had earlier conducted searches at several premises linked to the accused in the Mumbai-Thane region.
During a recent operation, around ₹1 crore was also seized in connection with the Money Trade Coin cryptocurrency fraud case.
Authorities are examining properties, bank accounts and financial transactions linked to the accused to trace assets allegedly acquired through the suspected fraud.
Investigators are also examining the role of a senior police officer who was serving in Thane at the time and had allegedly handled Lakhanpal’s office and dealings with clients.
Authorities are trying to establish whether the officer had any knowledge of or role in the alleged activities.
What Happens After the UAE Arrest?
Following Lakhanpal’s arrest, Indian authorities are preparing documents and case-related material required for the extradition process.
If he is brought back to India, investigators are expected to question him about the alleged cryptocurrency fraud, the funds collected from investors, financial transactions and assets or money allegedly moved outside the country.
Investigators are also tracing the flow of more than ₹113 crore allegedly collected through the scheme.
Bank accounts, companies, cryptocurrency-related transactions and digital assets are being examined to determine how the funds were received, transferred and potentially diverted.
Lakhanpal’s arrest is also expected to help investigators pursue further leads concerning other accused persons who remain outside India and the wider financial network allegedly linked to Money Trade Coin.
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