Money laundering racket through cryptocurrency deals busted in Kerala

The Kerala Police on Monday said they have busted a money-laundering racket and arrested four. The laundering was conducted through cryptocurrency deals, they added.

Muhammed Riyas, C Shafeeque, Munavvarali and Muhammed Shafeeque have been arrested on the charge of swindling crores of rupees from investors in connection with the cryptocurrency deal. The foreman of the racket, Nishad, is missing, Senior Kannur city police officer PP Sadanandan informed. Thus far, only one complaint has been received from the Kannur district, the police added.

The accused allegedly raised around Rs 100 crore through an online website. The website was created in the name of a fake company formed in Bengaluru. The website falsely promised customers a dividend of two to eight per cent per day in cryptocurrency. While around Rs 40 crore was found transacted through the account of one of the arrested, another Rs 32 crore was found transacted through the account of another.

After carrying out the transactions with their customers, the accused then allegedly transferred the rest of the funds into Nishad's account, said the police.

The Kerala police's crime branch wing is investigating a similar case in Malappuram. It recently froze Nishad's bank account with Rs 34 crores, the police informed. Though earlier arrested by police in Malappuram in connection with money laundering, Nishad went missing after securing bail. He is presently said to be in the Middle East.