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Minister of State for Finance Pankaj Chaudhary, in a Monday disclosure, informed the public about the Enforcement Directorate’s (ED) significant actions in cryptocurrency fraud cases. As a result of their investigations, the ED successfully apprehended 20 individuals involved in these fraudulent activities. Alongside the arrests, the authorities also seized a substantial sum of crime proceeds, amounting to Rs 1,144 crore.
Furthermore, under the purview of the Foreign Exchange Management Act (FEMA) section 37A, assets worth Rs 270.18 crore were seized by the authorities. In addition to this, a show cause notice was issued to the cryptocurrency exchange Zanmai Labs Pvt Ltd, widely known as WazirX, and its directors. The notice pertained to their involvement in transactions that amounted to a staggering Rs 2,790.74 crore in cryptocurrencies.
The Financial Action Task Force (FATF) has highlighted the appeal of virtual assets’ anonymity to criminals, and this attribute has drawn their attention to the illicit use of cryptocurrencies in fraudulent activities. Chaudhary emphasized that the Directorate of Enforcement is diligently investigating multiple cryptocurrency fraud cases, with a focus on money laundering schemes. Certain crypto exchanges have also come under scrutiny during these investigations.
To combat these illegal activities effectively, the ED employed the provisions of the Prevention of Money Laundering Act (PMLA), 2002. In line with this, they successfully seized and froze crime proceeds totaling approximately Rs 1,144.47 crore. To ensure accountability, the ED filed a total of 12 Prosecution Complaints (PCs) before the Special Court, PMLA, in connection with these cases, which included 2 supplementary PCs.
The ED’s relentless efforts in combating cryptocurrency fraud are crucial in safeguarding financial integrity and protecting the public from falling victim to fraudulent schemes. As the investigation unfolds, the authorities will likely continue to pursue individuals and entities engaged in unlawful activities related to virtual currencies.
