ED Investigating Multiple Crypto Fraud Cases: MoS Finance

The Law Enforcement Directorate is investigating several cases related to cryptocurrency/virtual digital currency frauds in which a few crypto exchanges have also been found involved in money laundering, Parliament informed on Monday.

In a written response to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said virtual digital assets could be used for criminal purposes.

“The Enforcement Directorate is investigating several cases related to cryptocurrency/virtual digital currency frauds in which a few crypto exchanges have also been found involved in money laundering,” he said. .

Necessary action in accordance with the provisions of the Prevention of Money Laundering Act 2002 (PMLA) has been taken by the Enforcement Directorate (ED), it added.

“As of 31 January 2023, proceeds of crime amounting to Rs 936.89 crore have been seized/seized/frozen, five people have been arrested and six prosecution complaints (PC), including an additional PC, have been filed before the Special Court, PMLA in these cases,” the minister said.

In addition, under the Foreign Exchange Management Act 1999 (FEMA), assets amounting to Rs 289.28 crore were seized.

The minister said a show cause notice to cryptocurrency exchange Zanmai Labs Pvt Ltd, known as WazirX, and its administrators under FEMA for transactions involving cryptocurrencies worth Rs 2,790.74 crore was also issued.

Crypto assets are currently unregulated in India. Crypto-related frauds are handled under applicable fraud and cybercrime laws.