The Morris Coin cryptocurrency scam allegedly defrauded more than 900 investors of approximately Rs. 1,200 crore through promises of guaranteed returns and future token listings. According to the Enforcement Directorate (ED), promoters collected investments through multiple companies before diverting funds toward personal expenses and other assets.
How the Morris Coin Investment Scheme Operated
Morris Coin was marketed as a cryptocurrency investment opportunity through an initial coin offering (ICO). According to the ED, companies including Long Rich Global, Long Rich Technologies, and Morris Trading Solutions collected money from investors.
The scheme promised daily dividends and eventual cryptocurrency exchange listings, encouraging investors to commit funds for extended periods.
However, investigators alleged that Morris Coin was not a legitimate cryptocurrency investment and that promoters operated a Ponzi scheme.
Investors Promised High Daily Returns
Investors were reportedly offered Rs. 270 daily for 300 days against an initial investment of Rs. 15,000. The Kerala High Court records also described promised daily returns of approximately 3% to 5%.
Investors faced a 300-day lock-in period before they could supposedly trade their tokens on Franc Exchange. However, the anticipated listing never materialized.
Agents and Promotional Events Attracted Investors
The scheme expanded through referral networks, with agents reportedly earning commissions ranging from 10% to 30%.
According to the ED, celebrity promotional events, dedicated websites, and digital wallets helped establish credibility among prospective investors.
Early dividend payments further encouraged participation, while displayed wallet balances created the impression of genuine cryptocurrency ownership.
ED Investigation Revealed Alleged Fund Diversion
Following complaints from investors in Kerala’s Malappuram and Kannur districts, authorities registered multiple cases.
According to court records, approximately Rs. 1,200 crore entered accounts associated with promoter Nishad K and his companies between January and September 2020.
The ED alleged that investor funds financed luxury properties, vehicles, hotel stays, and cryptocurrency purchases, including Bitcoin and Ethereum.
Investigators also alleged that incoming deposits funded earlier investor payouts and agent commissions.
Final Thoughts
The Morris Coin case illustrates how guaranteed returns, referral incentives, and fabricated digital assets can conceal investment fraud. Investors should verify cryptocurrency legitimacy, regulatory disclosures, and withdrawal conditions before committing funds.
Also Read: How the GainBitcoin Scam Became India’s Biggest Cryptocurrency Ponzi Scheme
Disclaimer : Crypto News India does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
