India Regulator Probes at Least 10 Crypto Exchanges on Money Laundering Allegations: Report

The Enforcement Directorate believes approximately 1000 crore rupees ($130 million) could have been laundered in the case.

AccessTimeIconAug 11, 2022 at 10:34 a.m. UTC
Updated Aug 11, 2022 at 3:20 p.m. UTC

Amitoj Singh is CoinDesk's regulatory reporter covering India. He holds BTC and ETH below CoinDesk's disclosure threshold of $1,000.

India's Enforcement Directorate (ED) is investigating at least 10 crypto exchanges for allegedly assisting foreign firms launder money via crypto, according to an Economic Times report, citing people aware of the matter.

The money laundering investigation gained attention recently after the ED raided the properties of a WazirX director. This sparked an online spat between WazirX founder Nischal Shetty and Binance CEO Changpeng Zhao over whether Binance owns of the Indian exchange.

The government agency estimates the accused firms laundered more than 1,000 crore rupees, or around US$130 million, in the instant loan app case, adding that most of the allegations have a China link, the report said.

In an earlier press release, the ED had stated "summons were issued to the crypto exchanges" after conducting raids on the properties of a WazirX director. The ET report adds that at least 10 exchanges are under investigation.

The accused firms approached exchanges to buy crypto for more than Rs 100 crore (around $13 million) after which the tokens were sent to international wallets without enhanced due diligence or raising suspicious transaction reports (STR), according to the probe's current findings as stated in the report.



Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Amitoj Singh is CoinDesk's regulatory reporter covering India. He holds BTC and ETH below CoinDesk's disclosure threshold of $1,000.

CoinDesk - Unknown

Amitoj Singh is CoinDesk's regulatory reporter covering India. He holds BTC and ETH below CoinDesk's disclosure threshold of $1,000.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC