Cryptocurrency Used in Indian Scam
A recent scam in India involving the Magicwin app, which illegally streamed cricket matches, has exposed a sophisticated network of shell companies, hawala transactions, and the use of the TRON cryptocurrency. The Enforcement Directorate (ED) is investigating the scam, which is estimated to involve around Rs 200 crore.
How the Scam Worked
The scam involved several individuals and entities, including a Pakistani national based in Dubai who owned the websites used for illegal streaming. The individuals involved used a network of shell companies and hawala transactions to launder the money. The TRON cryptocurrency was used to facilitate the transactions, making it difficult to trace the flow of funds.
The Role of TRON
TRON, a decentralized blockchain platform with smart contract functionality, was used to transfer funds. This was made possible by the TRC20 token standard, which enables the creation of tokens on the TRON blockchain. The scammers likely chose TRON because of its low transaction fees, which made it more difficult to trace the funds.
The ED has seized cash, digital devices, and incriminating documents. They are investigating potential links to terrorist financing.
This case highlights the potential for cryptocurrency to be used for illicit activities. It also highlights the need for increased regulatory scrutiny of the crypto industry.
