How Indian Authorities Busted an Alleged Crypto Scam Operation

India’s Enforcement Directorate (ED) has cracked down on an alleged cryptocurrency fraud operation in Maharashtra, resulting in investor losses of over Rs. 4.25 crore (approximately $472,000).

The agency conducted search operations at three locations in Nagpur on January 7 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

India’s ED Targets “Ether Trade Asia” in Crypto Scam Probe

According to the press release, the locations were linked to Nished Mahadeo Rao Wasnik and his associates. The ED explained that Wasnik headed a group allegedly involved in running an unauthorized online platform known as “Ether Trade Asia.”

Investigators claim the group organized promotional seminars at premium hotels in Nagpur and other parts of Maharashtra. During these events, organizers allegedly presented attendees with misleading claims about investment opportunities. The ED said the aim was to “defraud innocent investors.“

“They designed and promoted the Ether Trade Asia platform by fabricating a fraudulent binary commission scheme with false promises and induced gullible investors by offering them exorbitantly high returns on investments purportedly made in ‘Ethereum’ cryptocurrency through various scheme floated under the banner of his firm M/s Ether Trade Asia and thereby collected huge amounts from the public,” the press release read.

According to the agency, the group used the funds raised for personal use. ED estimates that investor losses exceed Rs. 4.25 crore. The investigation also found that the accused used the proceeds to acquire both movable and immovable properties. These were held either directly by them or through family members and entities under their control.

Additionally, authorities stated that Wasnik and his associates used a part of the funds to purchase cryptocurrencies. The accused concealed this in their personal wallets. According to the ED, the latest search operation resulted in the seizure of incriminating documents and digital devices.

The ED also froze bank balances worth more than Rs. 20 lakh (approximately $22,000) and a personal wallet holding digital assets valued at approximately Rs. 43 lakh (around $51,000). Authorities further identified several properties, including benami properties worth several crores of rupees, allegedly bought by the accused individuals.

A benami property is a property that is held in the name of one person, but paid for and actually owned or controlled by another person. The intention is to conceal the real owner’s identity. The term comes from Hindi: “benami,” meaning “without a name.”

In addition, the ED has frozen cryptocurrencies worth Rs. 4.79 crore (around $530,000) in a separate land fraud case in Chandigarh. Both investigations remain ongoing.

The investigations align with broader enforcement actions against crypto-related fraud and scams in India. In December, authorities dismantled a large fake cryptocurrency-based Ponzi and multi-level marketing (MLM) scheme. The operation allegedly defrauded hundreds of thousands of investors, resulting in losses of $254 million.

The Enforcement Directorate (ED) also carried out search operations at 21 locations across Maharashtra, Karnataka, and Delhi. These operations targeted another crypto-linked MLM scam that was reportedly operating for nearly 10 years.