Dehradun, August 3: The Enforcement Directorate (ED) has taken significant action by issuing an order to seize assets worth ₹8.54 crore belonging to the owner of a Bitcoin investment company. This individual is accused of defrauding clients of nearly ₹200 crore since 2014.
On Monday, the ED released a press statement indicating that its Dehradun sub-zonal office issued a provisional attachment order under the Prevention of Money Laundering Act (PMLA), 2002, on July 31, targeting Hemant Ishwar Sharma’s assets.
Sharma is alleged to have deceived unsuspecting individuals by enticing them to invest in Bitcoin through his Iceland-registered website, BTCfund.is.
According to an official statement from the ED, the agency initiated an investigation based on an FIR filed against Sharma at the Rajpur police station in Dehradun under the Indian Penal Code (IPC), 1860. This FIR pertains to fraudulent activities involving investors through the BTCfund.is website.
The ED further revealed that another FIR was filed against Sharma and others at the Dineshpur police station in Udham Singh Nagar district, Uttarakhand, under various sections of the IPC, 1860, related to the same fraudulent scheme.
The investigation revealed that Sharma, who is currently in judicial custody, had amassed large sums of money by misleading people into investing in Bitcoin through his controlled website, BTCfund.is.
He lured investors with promises of high returns and falsely claimed that several foreign nationals were associated with the company, making the scheme appear credible and internationally supported. These deceptive claims prompted investors from across India to deposit funds on the platform.
The ED reported that this fraudulent scheme operated for nearly five years (2014 to 2018). After gaining the trust of investors and collecting substantial amounts of Bitcoin, Sharma abruptly shut down the website, leaving investors feeling helpless and cheated.
Blockchain analysis revealed that approximately 856.23 BTC (valued at ₹200 crore) was identified as proceeds of crime, which were used to purchase real estate and vehicles, as well as for renovations of his home.
The investigation also disclosed that Sharma had no other source of income besides the funds obtained from BTCfund.is, which he used to maintain a lavish lifestyle.
Despite lacking formal income, he managed to acquire two luxury cars, a bungalow in a posh area of Dehradun, and several properties worth millions in Dehradun and surrounding areas. Previously, the ED had issued a provisional attachment order to seize assets worth ₹4.56 crore belonging to Sharma.
Sharma has been arrested and is currently incarcerated in Siddowala Jail in Dehradun. According to the statement, the ED filed a chargesheet against him in the special court in Dehradun (PMLA) on May 20, which the court acknowledged on July 13.
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