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The wallet is controlled by Dubai-based entrepreneur-investor Vinod Khute, who allows its operation only thrice a month when the wallet owner can sell crypto on the provided platform and can get money transferred into his account.
The amount was lying in one of the wallets ED traced during a search on the premises of a suspect in Pune, along with its access code. Sources said Khute has been luring investors for investing in cryptocurrency after offering attractive interest rates. ED suspects Khute intends to launch his own cryptocurrency and many “investors are falling prey”.
ED is investigating Khute, associated companies and D Dhanashree Multi State Co-op Credit Society Ltd controlled by him, for a Rs 125-crore Foreign Exchange Management Act (Fema) violation case. The ED alleged that Khute controlled VIPS Group of Companies engaged in various illegal trades, crypto exchanges, and wallet services, and the proceeds were being siphoned off through hawala channels to various foreign countries.
ED will write to Pune police for investigating the group for fraudulent activities and for registering an FIR against them. ED will also write to RBI for taking required action against Dhanashree. ED can investigate a money laundering case under PMLA only if there is a police FIR against the suspect. ED recently searched Khute’s associates’ premises in Maharashtra for Fema violation and seized and froze assets (cash and bank balance) worth around Rs 18.5 crore.
ED officials initially hoped to get the crypto wallet currency as it was connected to a bank account of its owner. But a subsequent examination revealed that it cannot be accessed at any random point of time, but on specific days of the month, when the owner is allowed to make a transaction. ED alerted the bank stating that whatever money comes into the account is connected to the crypto wallet. ED believes it is unlikely that Khute may allow the wallet’s operation and the agency is seeking technical help to ensure that he should not empty the wallet.
Last week, ED released a press note related to the seizure from Khute-linked premises. In it ED said, “It was revealed that Global Affiliate Business has been running an illegal and unauthorized multilevel marketing scheme wherein if a person opts for the scheme as a member and refers other consumers/clients on the application/website, a commission on his investment/expense on the application is credited in his account/wallet.”
Global Affiliate Business has also been found to be marketing the business of Kana Capital, which is engaged into brokerage under which various clients trade forex, crypto and stocks.
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