The Enforcement Directorate (ED) has taken significant action in the ongoing investigation into the Meghalaya Ponzi scam. Recently, the agency provisionally attached movable assets valued at Rs 1.06 crore under the Prevention of Money Laundering Act (PMLA), 2002. This action is linked to the fraudulent ‘Global Media App’ scheme that deceived numerous investors.
Details of the Ponzi Scheme
The fraudulent operation involved an online earning and investment scheme that assured users of passive income through advertisement views. Authorities began their investigation following a First Information Report (FIR) lodged at the Madanriting Police Station in East Khasi Hills. The complaint highlighted substantial cheating related to the ‘Global Media App’.
How the Scam Operated
According to the ED, the scammers presented the app as a Ponzi-style investment platform. Users were encouraged to purchase various VIP membership plans, which promised high daily returns. The fraudulent application ran from June 3, 2022, to October 12, 2022, before the operators vanished with the investments.
Financial Impact
Investigations revealed that the scam generated around Rs 45.33 crore in illicit funds. Funds were collected through various means, including:
- Bank transfers
- UPI transactions
- Cryptocurrency wallets
The investigation found numerous bank accounts and payment gateway accounts linked to the scheme, which are considered “mule” accounts used for layering illicit proceeds.
International Dimensions of the Fraud
The ED also uncovered significant international aspects of the scheme. The promoters operated through a Telegram channel, managed by individuals with mobile numbers registered in Cambodia and Malaysia. Additionally, the app’s backend accounts were registered under Cambodian terms of service, indicating operational control outside of India.
Continued Investigation Efforts
During the investigation, the ED collaborated with various financial institutions and cryptocurrency exchanges. Through detailed analysis of financial transactions, the agency identified additional proceeds of crime now subject to provisional attachment under Section 5 of the MLA, 2002.
A notable portion, around Rs 2.45 crore, was raised using Tether (UST) tokens on the TRON blockchain. The ED is tracing the onward movement of funds and has obtained KYC details of recipients linked to a foreign-based cryptocurrency exchange.
The ED’s actions underscore the serious implications of such Ponzi schemes and its commitment to protecting investors from fraudulent activities.
