ED investigating several cases related to crypto, digital currency frauds: MoS Finance

Enforcement Directorate is investigating a number of instances associated to cryptocurrency/ digital digital forex frauds whereby just a few crypto exchanges have additionally been discovered concerned in cash laundering, Parliament was knowledgeable on Monday. In a written reply within the Lok Sabha, Minister of State for Finance Pankaj Chaudhary mentioned the digital digital belongings have the potential for legal misuse.

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

Necessary motion as per provisions of Prevention of Money Laundering Act, 2002 (PMLA) has been taken by the Directorate of Enforcement (ED), he added.

“As on January 31, 2023, proceeds of crime amounting to Rs 936.89 crore have been attached/seized/freezed, five persons have been arrested and six Prosecution Complaints (PCs), including one supplementary PC have been filed before the Special Court, PMLA in these cases,” the minister mentioned.

Further, beneath Foreign Exchange Management Act, 1999 (FEMA) belongings amounting to Rs 289.28 crore have been seized.

The minister mentioned one present trigger discover to cryptocurrency trade Zanmai Labs Pvt Ltd, often called WazirX, and its Directors beneath FEMA for transactions involving cryptocurrencies value Rs 2,790.74 crore have additionally been issued.

Crypto belongings are at the moment unregulated in India. Frauds regarding crypto are handled beneath extant legal guidelines towards fraud and cyber crime.

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