Enforcement Directorate Seizes $3.5 Million Property Linked to Crypto Scam in India

The Enforcement Directorate (ED) seized a $3.5 million hotel property in Tamil Nadu linked to the TP Global FX cryptocurrency scam. The operation was part of a crackdown on illegal money activities under the Prevention of Money Laundering Act. The ED’s actions followed a police investigation revealing that investor funds were misappropriated for personal gain, with the RBI also warning the public about the unregistered forex trading platform.

The Enforcement Directorate (ED) of India recently seized a commercial hotel property valued at $3.5 million in Pamban Island, Rameswaram, Tamil Nadu. This seizure is linked to a cryptocurrency scam involving TP Global FX, a fraudulent forex trading platform that misled thousands of victims in India into investing with promises of high returns. Officials executed the seizure under the Prevention of Money Laundering Act (PMLA), 2002, focusing on curbing illegal financial activities.

The comprehensively valued properties seized by the ED include 60 hotel rooms and additional vacant land, all part of the Seven Hills Pamban Island Resort. The ED made its announcement via a post on X, confirming the attachment of assets belonging to the companies M/s KK Traders and TM Traders, both associated with TP Global FX.

This investigation commenced following a case filed by the Kolkata Police against these companies due to their suspected involvement in illicit acts, particularly money laundering. The ED’s actions underscore a significant push against illegal financial operations in India.

The Reserve Bank of India (RBI) also weighed in, clarifying that TP Global FX is unregistered and barred from conducting forex trading. The RBI issued a public warning in September 2022 about TP Global FX and similar unapproved trading platforms to safeguard citizens from financial scams.

Further investigations revealed the web of deceit strategically crafted by three individuals: Prasenjit Das, Tushar Patel, and Shailesh Kumar Pandey. They established bogus companies to lure investors into TP Global FX by promising lucrative returns from forex and phoney crypto schemes.

The ED found that rather than utilising the gathered funds for the claimed trading activities, Tushar Patel and his accomplices diverted the money for personal purchases, often acquiring assets for their own benefit rather than for investment purposes.