The Enforcement Directorate (ED) has delved deep into the intricate web of a ₹6,606 crore bitcoin-driven Ponzi scheme orchestrated by Variable Tech Pte Ltd, headquartered in Singapore. Shocking revelations have surfaced regarding the promoters' extravagant expenditure, amounting to nearly ₹1 crore on promotional activities in Macau and Dubai. This excessive spending stands in stark contrast to the promoters' purported annual income, which allegedly ranged between a modest ₹5 lakh to ₹6 lakh. These promotional events, as per ED sources, were allegedly orchestrated to entice unsuspecting individuals into investing in the scheme, which ultimately yielded no returns for participants. The investigation has brought to light that this fraudulent operation transpired between October 2016 and August 2017, during which the promoters compensated event organizers with bitcoins or equivalent sums based on 2017 exchange rates.
Agency Pursues Overseas Contracts and Fund Diversions
In its relentless pursuit of justice, the ED is actively seeking to procure any contracts associated with the organization of promotional events abroad. Shockingly, it has been revealed that Variable Tech amassed a staggering 80,000 bitcoins from unsuspecting investors across the nation by promising lucrative returns. Furthermore, funds totaling ₹6,606 crore were allegedly diverted through nine foreign entities for the acquisition of overseas properties. These findings shed light on the complex nature of the scheme and the extent to which the perpetrators went to perpetrate their fraudulent activities.
Legal Action and Financial Manipulation Unveiled
The ED initiated its investigation in April 2018, spurred by multiple cases filed by the Maharashtra and Delhi police against Variable Tech and its promoters. Allegations against these individuals include deceiving investors with promises of a 10% monthly return in bitcoins. Investors were led to believe that their investments would be utilized for bitcoin mining, with the anticipation of receiving substantial returns in the form of crypto assets. However, the promoters allegedly diverted the bitcoins and concealed them in obscure online wallets, reneging on their promises to investors. The agency's actions have led to the attachment of properties valued at ₹69 crore. Subsequently, a chargesheet was filed in June 2019, which garnered acknowledgment from a Mumbai special court on February 14 of this year, marking a significant step forward in the pursuit of justice in this complex financial fraud case.
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