A sophisticated international cryptocurrency scam that allegedly siphoned more than Rs 45 crore from investors has seen its first major enforcement action, with the Enforcement Directorate in Shillong provisionally attaching assets worth Rs 1.06 crore under the Prevention of Money Laundering Act.
Ponzi Scheme Disguised as Advertising Platform
The fraud operated through an application called Global Media App, which was presented as an online advertising platform but functioned as a Ponzi scheme. Victims were promised daily passive income for watching videos and were persuaded to buy VIP membership plans on the assurance of high returns and referral commissions.
The scheme is said to have run between June and October 2022 before the operators abruptly shut down the application and disappeared with the funds. The investigation was triggered by a local complaint filed at Madanrting Police Station.
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ED Tracks Proceeds of Crime and Fund Layering
The ED’s Shillong Sub Zonal Office said the total proceeds of crime generated by the fraud amount to about Rs 45.33 crore. Of this, assets worth Rs 1.06 crore have now been attached, marking the first significant recovery in the case.
The investigators uncovered a complex layering mechanism used to conceal the money trail. Fraudsters allegedly relied on mule accounts, described as rented bank accounts and merchant IDs, to route funds through payment gateways. The probe also found that around Rs 2.45 crore was collected directly from victims in the form of USDT, or Tether, on the TRON blockchain before being moved to foreign cryptocurrency exchanges.
Cambodia and Malaysia Links Under Scanner
The investigation points to an international operational structure. The Telegram channels used to lure investors were administered by individuals using mobile numbers from Cambodia and Malaysia. It also says the Google accounts used to manage the backend of the application were registered in Cambodia, suggesting that the scheme was being controlled from outside India.
The ED said the attached funds were identified through analysis of financial transactions and blockchain transfers. Efforts are continuing to trace the remaining Rs 44 crore and identify the ultimate recipients of the money on foreign exchanges.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
