The Enforcement Directorate (ED) has taken provisional measures to seize assets valued at ₹3.43 crore in the Morris coin cryptocurrency case, which involves allegations of fraud. These actions have been initiated under the Prevention of Money Laundering Act (PMLA) of 2002.
In May 2022, the ED filed a prosecution complaint against six individuals who were named as defendants in this case before the Special Court for PMLA in Kozhikode. Among the assets that have been provisionally attached are the funds held in the bank accounts of M/s Flywithme Mobile LLP, which is a partnership firm involving Nishad K. and Hasif K., as well as real estate owned by Ansari P., an associate of Nishad K.
This investigation was initiated based on first information reports (FIRs) filed by the Kerala Police in multiple police stations against Nishad and others for alleged fraudulent activities, where they promised high daily returns of 2-3% to investors. Subsequently, it was discovered during the inquiry that Nishad had gathered deposits from investors through his companies, namely M/s Long Rich Global, M/s Long Rich Technologies, and M/s Morris Trading Solutions. These funds were presented as part of an initial coin offering for the launch of the Morris coin cryptocurrency.
Initially, investors received payments in the form of profits, following a pyramid scheme structure, but these payments were eventually discontinued. The total illicit gains from this unlawful operation are estimated at ₹54 crore, as stated in an official release.
Previously, the ED conducted numerous searches nationwide at the properties of Nishad and his associates, resulting in the confiscation of approximately ₹21 lakh and incriminating documents. In March 2022, Abdul Gafoor, the managing director of M/s Stoxglobal Brokers Pvt. Ltd., and an associate of Nishad, were arrested.
The ED has provisionally attached both movable and immovable assets related to the companies and associates of Nishad, with an approximate total value of ₹50 crore.
