Bengaluru: ED attaches Rs 7 cr from 29 bank accounts linked to ShareHash app scam

Bengaluru: The Directorate of Enforcement (ED) has provisionally attached Rs 7.02 crore from 29 bank accounts of various entities in a tech-enabled cyber investment scam conducted through five private companies in Bengaluru. 

An ED statement said on Thursday that the fraudulent scheme was operated via the 'ShareHash' mobile app, luring hundreds of gullible investors with promises of lucrative returns through cryptocurrency. 

The funds were attached under the Prevention of Money Laundering Act, 2002, it added. 

The scam began in 2021 with the launch of the 'ShareHash' app on Google Play. The app was installed by over 50,000 people before the promoters pulled the plug on it in January 2022. 

The app offered cloud mining, and allowed people to open an account and remotely participate in cryptocurrency mining for a fee. 

The app's founders later launched an online hunt for local residents who could act as fronts for shell companies and in whose names bank accounts could be opened. Those who signed up and gave their personal details were offered Rs 50,000 to Rs 75,000 each. 

The founders opened five primary bank accounts of as many companies linked to the ShareHash app: Cotata Technology Pvt Ltd; Crampington Technology Pvt Ltd; Siraleen Tech Solutions Pvt Ltd; Nileen Infotech Pvt Ltd; and Moltres Exim Pvt Ltd. 

These companies launched a promotional campaign by sending bulk messages. They offered up to 45% returns on daily investments and instant withdrawals. 

The companies paid the returns to gain the users' confidence, but closed the app in January 2022, citing technical snags. The funds were later laundered. 

Based on a complaint from a JP Nagar resident who lost money in the scam, the Central Crime Branch (CCB) arrested four people in April 2022. 

The ED later launched a money laundering probe.