Ashish Malik is involved in the Crypto currency investigation. The AML Watchdog ED has investigated the case.
WHAT IS CRYPTO CURRENCY?
Crypto currency is a digital asset. The name originates from the fact that all of its transactions are highly encrypted, making the exchanges highly secure. It is decentralized in nature, unlike traditional currencies, which are managed and controlled by a central authority.
Crypto are susceptible to hackers and theft, and their price volatility makes them difficult to use for everyday transactions. Crypto currencies are easily hackable, they’re vulnerable to theft, and they’re not backed by anything.
How does cryptocurrency work?
The cryptocurrency work on the distributed network known as Blockchain. It keeps the record of transactions. They are known as currency holders. Mining is the process where the different units of cryptocurrency is created.
Users can also buy the currencies from brokers, then store and spend them using cryptographic wallets. Transactions including bonds, stocks, and other financial assets could eventually be traded using the technology.
If you own cryptocurrency, you don’t own anything tangible. What you own is a key that allows you to move a record or a unit of measure from one person to another without a trusted third party.
WHAT IS DIRECTORATE OF ENFORECEMENT?
The Directorate of Enforcement is a multi-disciplinary organization mandated with investigation of offence of money laundering and violations of foreign exchange laws. The statutory functions of the Directorate include enforcement of the following: Prevention of Money Laundering Act, 2002, Foreign Exchange Management Act, 1999, Fugitive Economic Offenders Act, 2018, Foreign Exchange Regulation Act, 1973 and Sponsoring agency under COFEPOSA.
ABOUT Ashish Malik CASE
Hon’ble Special Court of Hyderabad has granted ED the custody of Ashish Malik on 08/09/2022. In accordance with the court order Ashish Malik was taken into ED custody on 10/09/2022 from Tihar Jail, New Delhi.
Ashish Malik was arrested by the Economic Offence Wing (EOW), New Delhi on 30/05/2022 for defrauding more than 1000 people on the account of making investment in a Russian oil company named Roseneft Oil Company. The accused Ashish Malik Along with his accomplices Sunil Singh and Sandeep Kaushik asked people to give money on promise of giving 20% per month return on making investment in Roseneft Hedge Fund and also launched two coins named RHFCOIN and RHFGOLD.
In this way fund of crores was collected from people all across India and the same was invested in crypto currencies, largely Bitcon. Subsequently accused and his accomplices siphoned off the funds collected. Proceeds of Crime in the subject matter is Rs. 52 crore, however further investigation are on to unearth the actual amount of the proceeds.
