Morris coin crypto scam – The mode of Cheating

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Morris coin crypto scam – The mode of Cheating

Let us know how the investors were cheated in the Morris Crypto Scam.

  1. The accused promoters allegedly collected deposits from investors under the guise of an Initial Coin Offer (ICO) for the launch of Morris Coin cryptocurrency. A company seeking to raise money to create a new coin, app, or service can launch an ICO as a way to raise funds. Interested investors can buy into an initial coin offering to receive a new cryptocurrency token issued by the company.
  1. Unsuspecting investors were lured to invest in the attractive schemes through WhatsApp messages, where they were offered ₹270 every day for 300 days and 15 Morris Coin cryptocurrency worth ₹1,500 each, on investing ₹15,000 through agents in the crypto wallets provided by the promoters.
  1. Working like a Multi-Level Marketing scheme, those who made join others in the scam received lucrative commissions and the network flourished rapidly. The agents were reportedly given 10-30% of the commission for making people invest in Morris Coin.
  1. The accused promised investors that the cryptocurrency was to be listed on Franc exchange, a fake crypto exchange based out of Coimbatore, after which, the value of the tokens would increase multifold, however, the coins were never listed.
  1. While the accused did not have any office of his own, nor did he share his personal contact with anybody, he managed to collect huge funds from unsuspecting investors and transferred the money to his bank account and that of his firms and subsequently to shell companies.
  1. When investors stopped receiving money, the whole network collapsed. Investors were earlier pacified with the promise that the promoters of Morris Coin were planning to issue ATM cards to cope with the high number of customer withdrawals.
  1. Basis several FIRs registered by the cheated investors, the ED booked and arrested the accused U/S 19 and attached assets U/S 5(1) of the Prevention of Money Laundering Act (PMLA), 2002.

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