ED Searches Five Coinswitch Kuber Premises for Alleged Money Laundering: 2022 Report. In a case involving the cryptocurrency exchange’s alleged violation of US Foreign Corrupt Practices Regulations (FEMA), the Application Direction (ED) reviewed 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 house, the director’s house, and official properties.
According to the person, reported by Coindesk, “We are investigating several potential breaches by FEMA and certain other companies related to it.” Since we did not obtain the necessary cooperation, we searched the CEO’s house, the director’s house and the stock exchange official buildings.
A Coinswitch representative told IANS as stories of the raids began to surface: “Our attitude has always been one of openness. We are constantly interacting with all stakeholders in the cryptocurrency industry, which is in its infancy but has a lot of potential.
According to the article, the ED is investigating “several possible violations under FEMA and certain other institutions associated with CoinSwitch.”
The action is part of a larger ED campaign against major bitcoin exchanges. In the past, there were rumors that the bureau was investigating more than 10 cryptocurrency exchanges for the illegal laundering of INR 1,000 Cr.
This follows the ED freezing the assets of WazirX, India’s largest cryptocurrency exchange. After similar examples of lending apps seeking crypto exchanges for comparable transactions were made public, the financial law enforcement agency also urged other companies to join the investigation.
The action is part of a larger ED campaign against major bitcoin exchanges. In the past, there were rumors that the bureau was investigating more than ten cryptocurrency exchanges for the illegal laundering of INR 1,000 Cr.
This follows the ED freezing the assets of WazirX, India’s largest cryptocurrency exchange. After similar examples of lending apps seeking crypto exchanges for comparable transactions were made public, the federal law enforcement department also urged other companies to participate in the investigation.
“We are incredibly excited about cryptocurrency and believe it will exist forever. As we transform India into the web3 hub of the world, we will continue to seek advice from the CoinSwitch group, which has been my home base over the past four plus years, according to Nair, quoted by Business Today.
The ED raided Zanmai Labs, the operating company of WazirX, India’s largest cryptocurrency exchange, a few weeks earlier. On August 5, the central agency raided one of the residences of the directors of Zanmai Lab Pvt Ltd and ordered the freezing of their bank balances totaling Rs 64.67 crore. As a result, the ED visited ten cryptocurrency exchanges in the country.
His investigation into the cryptocurrency exchange was linked to an ongoing investigation into numerous Chinese loan programs (mobile apps) operating in India. The ED is monitoring up to 10 cryptocurrency exchanges for their alleged involvement in 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 belonging to the cryptocurrency lending platform Vault. The ED scoured Yellow Tune Systems Pvt Ltd’s many Bengaluru locations and froze with the help of cryptocurrency exchange Flipvolt, which operates the vault run by Darshan Bathija.
Many Indian NBFC companies and their fintech partners are under investigation for money laundering by the ED due to their abusive lending practices. Five locations connected to CoinSwitch Kuber were reviewed, according to Coindesk, which cited an ED official. These locations included the CEO’s house, the director’s house, and official properties.
A company representative told IANS that he receives inquiries from several government organizations. “Transparency has always been the cornerstone of our strategy. We are constantly interacting with all stakeholders in the cryptocurrency industry, which is still in its infancy and has a lot of lllllllll, the spokesperson continued.
The ED is investigating “several possible FEMA and other companies related to CoinSwitch breaches.”
This comes as the ED steps up its crackdown on cryptocurrency exchanges to investigate money laundering. One of the executives of Zanmai Labs, the company that runs the WazirX cryptocurrency exchange, has already been researched by the agency.
A total of 64.67 crore in bank balances had been ordered to be frozen. Additionally, earlier this month, the ED seized assets from 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 violation of RBI standards, ED is launching money laundering investigations against several NBFCs and its fintech partners. ED found throughout the fundraising investigation that fintech companies had diverted large sums to buy cryptocurrency assets in the markets and then wash them offshore.
It has been claimed that bitcoin exchanges whose funds have been frozen so far lacked due diligence, violated KYC standards and were uncooperative.
Over 15 million people use CoinSwitch Kuber, a cryptocurrency exchange. The platform became a unicorn in 2021, becoming the second crypto firm to do so. Many investors support the startup, including a16z, Tiger International and Sequoia Capital
edited and proofread by nikita sharma