India’s ED Seizes $900K in Assets from Iceland‑Registered Bitcoin Fraud, Exposing $24M Crypto Laundering Trail

India's law enforcement and economic intelligence agency, Enforcement Directorate (ED), in Dehradun has provisionally attached assets worth ₹8.54 crore (Nearly US$ 900,000) belonging to Hemant Ishwar Sharma, accused of running a fraudulent Bitcoin investment scheme through his Iceland-registered website BTCFUND.IS. The scam defrauded investors of nearly ₹200 crore between 2014–2018.

BTCFUND.IS was an Iceland‑registered website operated by Hemant Ishwar Sharma between 2014–2018, used to lure Indian investors into a fraudulent Bitcoin investment scheme that defrauded them of nearly ₹200 crore (~856 BTC). The Enforcement Directorate (ED) has since attached assets worth ₹13.10 crore and arrested Sharma.

ED’s action under PMLA signals growing scrutiny of crypto fraud in India.

ED Attaches Assets in Bitcoin Scam

Key Details of the Case

• Scam Operator: Hemant Ishwar Sharma
• Fraudulent Platform: BTCFUND.IS (registered in Iceland)
• Period of Operation: 2014–2018
• Amount Defrauded: ~₹200 crore (856.23 BTC identified as proceeds of crime)
• Assets Attached (Latest Order): ₹8.54 crore (real estate, vehicles, luxury properties)
• Total Assets Attached So Far: ~₹13.10 crore
• Lifestyle Funded by Scam: Two BMW cars, a bungalow on Rajpur Road (Dehradun), multiple immovable properties
• Current Status: Sharma is under arrest and lodged in Siddhowala Prison, Dehradun. Prosecution complaint filed in May 2026, cognizance taken in July 2026

How the Scam Worked

• False Promises: Investors were lured with promises of high returns on Bitcoin investments
• Credibility Tactics: Sharma falsely claimed foreign nationals were associated with BTCFUND.IS to project legitimacy
• Abrupt Exit: After collecting substantial funds, the website was shut down, leaving investors helpless
• Money Laundering: Proceeds were laundered via crypto exchanges into real estate, vehicles, and luxury renovations

Broader Context

• Crypto Fraud Risks in India: This case highlights the growing danger of unregistered crypto platforms promising unrealistic returns
• Legal Action: ED’s use of the Prevention of Money Laundering Act (PMLA), 2002 shows increasing regulatory scrutiny on crypto-linked fraud
• Investor Warning: Authorities urge caution against schemes that lack regulatory oversight or promise guaranteed profits

Visual Overview

Scam Operator	Fraudulent Website	Assets Attached	Crypto Laundering
Hemant Ishwar Sharma	BTCFUND.IS (Iceland-registered)	₹8.54 crore (latest), ₹13.10 crore total	856.23 BTC (~₹200 crore)