Lakhampal was arrested on September 1. A Red Notice had also been issued against him following a request from the Thane Police. The Enforcement Directorate (ED) had recently started investigating the case and learned that Lakhampal was in the UAE. The information was shared with UAE authorities, following which he was arrested.
The case was first exposed in 2018 through India Today TV and Aajtak's special investigation, "Operation Bitcoin". During the investigation, India Today reporters posed as large investors and visited the Thane office of the Flintstone Group, a company linked to Money Trade Coin (MTC).
During the sting operation, company officials allegedly presented investors with the prospect of huge profits. They claimed that investments could generate returns of 10 to 20 times within four to six months. Large investors were also told that an escrow account facility could be provided.
People associated with the company went further, claiming that investors could even be helped to obtain citizenship of a Caribbean country. They also said that MTC could be recognised as legal currency in some countries. Through these claims, investors were allegedly being offered the prospect of becoming wealthy quickly.
Following the India Today special investigation, the Thane Police registered an FIR in June 2018 against Amit Lakhampal and his associates. By that time, Lakhampal had already fled the country. The police began investigating the case, during which the roles of several people linked to the network also came to light.
Senior Thane Police officials had also taken action in the case at the time. Then Thane Police Commissioner Param Bir Singh publicly acknowledged the role of the India Today Group in bringing the matter to light.
According to the ED's investigation, between August 2017 and April 2018, people were persuaded to invest in a cryptocurrency that had not received recognition from any government institution. Investors suffered losses of around Rs 113.10 crore in the case.
The ED has alleged that Lakhampal held seminars in Delhi, Pune and Nashik, where he presented himself as an official of the Ministry of Finance. He allegedly assured investors that Money Trade Coin would soon receive government recognition and promised high returns on their investments.
During the investigation, the ED found information about several schemes and exchanges, including Coin Deposit Ratio, MTC Banque, MTCX India and Cryptozaniya. The agency alleges that the prices of MTC were manipulated. Trading and withdrawal facilities were later shut down, leaving investors unable to withdraw their money.
The ED said Lakhampal and his associates had fled India. They are accused of obtaining passports of Antigua and Barbuda and living in Dubai under different identities. On August 12, the ED conducted searches at several locations in connection with the case. During the searches, around Rs 1 crore in cash, digital devices and several documents were recovered. The agency suspects that these materials are linked to the alleged money laundering network.
Lakhampal's arrest in the UAE now marks a significant development in a case that remained unresolved for nearly eight years, with the Indian government beginning the process to bring the accused back to India.
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