Fri Dec 19 12:56:56 UTC 2025: Here’s a summary and a rewritten news article based on the provided text:

Summary:

The Directorate of Enforcement (ED) in Kochi has seized assets worth ₹3.78 crore belonging to individuals involved in a Ponzi scheme called “My Club Traders.” Muhammed Faisal, Abu Sufiyan, and their associates allegedly defrauded investors by promising unrealistic returns on investments, operating a pyramid scheme disguised as legitimate cryptocurrency trading. The funds were collected in cash, laundered through shell companies, and used to purchase property. The investigation, triggered by multiple FIRs filed by Kerala Police, is ongoing and has uncovered substantial evidence of fraud.

News Article:

ED Cracks Down on Kerala Ponzi Scheme, Attaches ₹3.78 Crore in Assets

KOCHI, December 19, 2025 – The Directorate of Enforcement (ED), Kochi Zonal Office, announced today the provisional attachment of ₹3.78 crore worth of assets belonging to individuals implicated in the “My Club Traders” Ponzi scheme. The ED alleges that Muhammed Faisal, Abu Sufiyan, and their associates defrauded unsuspecting investors by promising exorbitant returns on investments through the scheme.

The attached properties include agricultural land, residential and commercial premises, and bank accounts held in the names of the accused and related companies.

The investigation was launched following multiple First Information Reports (FIRs) filed by the Kerala Police, detailing allegations of cheating and fraud related to the collection of deposits under false pretenses.

The ED probe revealed that the “My Club Traders” scheme operated as a pyramid structure, falsely advertised as legitimate cryptocurrency trading and other ventures. Investors were lured in with promises of unrealistic daily profits and commissions for recruiting new members. However, the scheme relied on new investments to pay off earlier investors, leading to its eventual collapse.

According to an ED statement, the funds were collected in cash to avoid detection and subsequently laundered through shell companies like M/s Princess Gold and Diamonds LLP and M/s Toll Deal Ventures LLP. The laundered funds were then used to acquire the attached assets.

Searches were conducted on June 4, 2025, under the Prevention of Money Laundering Act (PMLA), resulting in the seizure of incriminating documents, including diaries detailing cash collections, investor information, financial transactions, and digital devices.

The ED confirmed that further investigation into the matter is underway.

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