A key accused in an alleged ₹113 crore cryptocurrency investment fraud has been arrested in the United Arab Emirates, giving Indian investigators a major breakthrough in the long-running case.
The accused, identified as Amit M. Lakhanpal, was arrested in the UAE on September 1, according to reports. His arrest followed action based on a Red Corner Notice issued in connection with the case.
Lakhanpal is accused of misleading investors through a cryptocurrency investment scheme involving Money Trade Coin (MTC). Investigators allege that he falsely presented himself as a Finance Ministry official to gain the confidence of potential investors.
How the Money Trade Coin Scheme Allegedly Worked
The case revolves around Money Trade Coin, a cryptocurrency promoted by Lakhanpal.
According to investigators, investors were attracted through seminars and promotional events held at star hotels. Lakhanpal allegedly claimed that MTC would receive government recognition, helping create an impression that the project had official backing.
Investigators allege that investors were subsequently cheated of approximately ₹113.10 crore through the scheme. The alleged fraud dates back several years, with the case relating to activities around 2017-18.
The Enforcement Directorate has described the alleged operation as part of its investigation into the financial transactions linked to the MTC cryptocurrency case.
ED Steps Up Investigation
The Enforcement Directorate (ED) has been investigating the alleged money-laundering aspects of the case.
In August, the agency conducted searches at several locations in the Mumbai-Thane region and seized approximately ₹1 crore during the investigation. The searches were linked to the alleged MTC cryptocurrency fraud involving Lakhanpal.
The ED is examining the movement of funds connected with the alleged fraud and attempting to trace assets and transactions associated with the case.
UAE Arrest Marks Major Development
Lakhanpal’s arrest in the UAE represents a significant development in the investigation, particularly because the case involves alleged financial fraud spanning several years.
Indian authorities are now working on the process to bring him back to India so that further legal proceedings and investigation can take place.
Once available to Indian investigators, Lakhanpal could face questioning over the alleged MTC investment scheme, the money collected from investors and the financial transactions connected to the case.
The investigation remains ongoing, and allegations against the accused will ultimately be subject to the legal process.
