Indian authorities seize $1.76M in Morris Coin crypto scam

YEREVAN (CoinChapter.com) — Indian law enforcement authorities have seized $1.76 million connected to the Morris Coin crypto scam. According to the Enforcement Directorate (ED) of India, the agency attached the assets under the Prevention of Money Laundering Act (PMLA). 

The ED seized several bank balances of Fly With Me Mobile LLP (a firm owned by Nishad and Hasif K) in various banks and immovable properties of Nishad K’s associates. 

The seized properties, which the accused allegedly purchased out of the proceeds of crime, included a hospital in Kochi and 52 Acres of Agricultural Land in the South-Indian state of Tamil Nadu.

“ED initiated a money-laundering investigation on the basis of various FIR’s registered in various police stations against Nishad K and others persons for cheating people on the pretext of giving high returns of 2-3% per day to the investors,” 

the ED press release read.

The ED had attached movable and immovable properties to Rs. 36.72 Crore (over $4.6 million). However, the total attachment in this case now stands at over $6.3 million. 

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What is the Morris Coin crypto scam?

Earlier this year, the Enforcement Directorate announced it had unearthed a new fraud connected to a fake cryptocurrency. 

The agency revealed that Nishad K had announced the Initial Coin Offering (IPO) of ‘Morris Coin’ in 2020. He convinced around 900 unsuspecting people to invest in the coin, promising high returns. 

The scammers collected Rs 15,000 (around $180) for 10 Morris Coins. They then instructed buyers to hold the tokens for 300 days in the wallets, which they provided to investors. The token Holders were supposed to get at least 2-3 % daily interest until the day of listing.

The scammers claimed they would list the coin on a Coimbatore-based cryptocurrency exchange called ‘Franc exchange.’  

They deployed agents to convince customers to invest in the ICO to make their tasks easy. In return, they paid such agents 10%-30% commission.

“Nishad K via his various firms such as M/s Long Rich Global, M/s Long Rich Technologies and M/s Morris Trading Solutions collected deposits from the investors in the guise of Initial Coin Offer for the launch of Morris Coin Crypto Currency,” 

the ED said. 

Neither the Morris Coin existed nor the scammers ever list anything on an exchange. Instead, they used the funds to purchase immovable properties. 

In March, the ED also arrested Abdul Gafoor, Managing Director of M/s Stoxglobal Brokers, in connection with the case. 

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Other Indian crypto scams like the Morris Coin

Crypto-related crimes are increasing not only in India but around the world. For example, as CoinChapter reported earlier today, users of crypto exchange Uniswap faced a phishing attack, losing as much as $9.1 million as a result. 

Earlier this month, the police in the Indian state of Kerala unearthed another crypto crime. According to The New Indian Express, Kochi-based companies Richferryman’ and ‘DealFX’ duped investors of millions of dollars in a fake cryptocurrency investment scheme. 

In March, police in Pune arrested Ajay Bhardwaj, the mastermind behind the Gain Bitcoin crypto scam. 

Bhardwaj, who later died of cardiac arrest, reportedly scammed investors of $12 billion through multiple fake companies worldwide. 

According to a recent report by cybersecurity firm CloudSEK, Indian investors have lost $126 million in various crypto scams.