BENGALURU: The Directorate of Enforcement (ED), Bengaluru, has provisionally attached around Rs 7.02 crore in a tech-enabled cyber investment scam conducted by the accused through Cotata Technology Pvt Ltd and other entities. In an official release on Thursday, the ED stated that “the amount being attached under the provisions of Prevention of Money Laundering Act (PMLA), 2002, was lying in the form of bank balance in 29 bank accounts of various entities”.
“The fraudulent scheme was operated via the ‘ShareHash’ mobile app, which lured hundreds of gullible investors with promises of lucrative returns through crypto currency mining -- only to misappropriate funds across a web of shell companies and laundering channels,” the ED added.
The agency stated that the “funds collected from unsuspecting individuals were initially returned in small portions to build trust -- a classic Ponzi tactic -- before communication ceased and the app was delisted from the app store”.
ED initiated investigation based on an FIR registered by the cybercrime police, Bengaluru, under various sections of the Information Technology Act, 2000, Banning of Unregulated Deposit Schemes Act 2019, and IPC, 1860, against various companies and individuals associated with the investment companies.
“The probe revealed that primary investment entities are Cotata Technology Pvt Ltd, Siraleen Tech Solutions Pvt Ltd, Crampington Technology Pvt Ltd, Nileen Infotech Pvt Ltd and Moltres Exim Pvt Ltd. These companies were allegedly formed using impersonated KYCs from unemployed youth and job-seekers during the Covid-19 pandemic. Their registered addresses were found to be non-functional or fictitious. The funds deposited into primary entities were siphoned using payment gateways. These funds were then routed into secondary shell entities and used for cash withdrawals, gold purchase etc,” added the ED.