ED searches five premises of Coinswitch Kuber for alleged money laundering: 2022 Report.
ED searches five premises of Coinswitch Kuber for alleged money laundering: 2022 Report. In a case involving the alleged violation of the U.S. Foreign Corrupt Practices Act (FEMA) regulations by the cryptocurrency exchange, the Enforcement Directorate (ED) looked into 5 Coinswitch Kuber locations.
Five locations connected to CoinSwitch Kuber were inspected, according to Coindesk, which cited an ED official. These locations included the CEO’s home, the director’s home, and the formal properties.
According to the person, who Coindesk reported, “We are investigating into several potential violations under FEMA and some other companies that are linked to it.” Since we didn’t get the needed cooperation, we searched the CEO’s home, the director’s home, and the exchange’s official buildings.
A Coinswitch representative told IANS as stories of raids started to surface, “Our attitude has always been one of openness. We constantly interact with all stakeholders in the cryptocurrency business, which is in its early stages but has a lot of potentials.
According to the article, the ED investigates “several possible violations under FEMA and certain other institutions associated with CoinSwitch.”
The action is a part of a more extensive ED campaign against significant bitcoin exchanges. In the past, rumors claimed that the bureau was looking into more than 10 cryptocurrency exchanges for illegally laundering INR 1,000 Cr.
This follows the ED’s freezing of the assets of WazirX, India’s largest cryptocurrency exchange. After similar examples of loan apps seeking crypto exchanges for comparable transactions were made public, the financial police agency also urged other businesses to participate in the investigation.
The action is a part of a more extensive ED campaign against significant bitcoin exchanges. In the past, rumors claimed that the bureau was looking into more than ten cryptocurrency exchanges for illegally laundering INR 1,000 Cr.
This follows the ED’s freezing of the assets of WazirX, India’s largest cryptocurrency exchange. After similar examples of loan apps seeking crypto exchanges for comparable transactions were made public, the federal law enforcement department also urged other businesses to participate in the investigation.
“We are incredibly excited about cryptocurrency and think it will be around forever. As we transform India into the Web3 hub of the globe, we will continue to seek advice from the CoinSwitch group, which has been my home base for the previous four-plus years, according to Nair, who was quoted by Business Today.
The ED raided Zanmai Labs, the operating company for WazirX, India’s largest cryptocurrency exchange, a few weeks prior. On August 5, the central agency searched one of Zanmai Lab Pvt Ltd’s directors’ residences and ordered their bank balances totaling Rs 64.67 crore to be frozen. As a result, the ED visited ten cryptocurrency exchanges in the country.
Its inquiry into the cryptocurrency exchange was connected to an ongoing probe into many Chinese loan programs (mobile applications) operating in India. The ED is keeping an eye on up to 10 cryptocurrency exchanges for their alleged participation in the money laundering of almost Rs 10 billion.
In response to its “predatory lending practices,” the agency recently froze bank assets valued At rs 370 crore owned by cryptocurrency lending platform Vault. The ED searched Yellow Tune Systems Pvt Ltd’s numerous Bengaluru locations and froze with the help of the Flipvolt cryptocurrency exchange, which operates the Darshan Bathija-led Vault.
Many Indian NBFC firms and their fintech partners are the subjects of money laundering investigations by the ED because of their exploitative lending practices. Five locations connected to CoinSwitch Kuber were examined, according to Coindesk, which cited an ED official. These locations included the CEO’s home, the director’s home, and the formal properties.
A corporate representative told IANS that they get inquiries from several governmental organizations. “Transparency has always been the cornerstone of our strategy. We constantly interact with all stakeholders in the cryptocurrency business, which is still in its early stages and has a lot of lllllllll, the spokesperson continued.
The ED is investigating “several possible FEMA and other businesses related to CoinSwitch contraventions.”
This occurs when the ED intensifies its crackdown on cryptocurrency exchanges to carry out money laundering investigations. One of the executives of Zanmai Labs, the company that runs the cryptocurrency exchange WazirX, has been the subject of past searches by the agency.
A total of 64.67 crore worth of bank balances had been ordered to be frozen. Additionally, earlier this month, the ED seized assets from the cryptocurrency exchange Flipvolt valued at 370 crores. Vault, a cryptocurrency lender, operates in India through Flipvolt, a domestic company.
For engaging in predatory lending practices in contravention of RBI standards, the ED is initiating money laundering inquiries against several NBFCs and its fintech partners. ED discovered throughout the fund trace investigation that the fintech companies had diverted significant amounts of cash to buy cryptocurrency assets on marketplaces and then wash them overseas.
It has been claimed that the bitcoin exchanges whose funds have frozen so far lacked appropriate due diligence, violated the KYC standards, and were uncooperative.
Over 15 million people utilize CoinSwitch Kuber, a cryptocurrency exchange. The platform became a unicorn in 2021, becoming the second crypto firm to do so. Numerous investors support the startup, including a16z, Tiger International, and Sequoia Capital
edited and proofread by nikita sharma
