The Union Minister of State for Finance, Pankaj Chaudhary, stated that the Enforcement Directorate had taken control of illegally gained money worth ₹1,144 crores and has arrested 20 people in cases connected to fraudulent actions involving cryptocurrencies or virtual digital assets.
The Enforcement Directorate is an agency under India’s Department of Revenue, Ministry of Finance. It enforces economic laws and fights financial crimes, including money laundering.
Under the Foreign Exchange Management Act (FEMA) 1999, assets worth ₹270.18 crore have been seized. Additionally, a show cause notice has been issued to cryptocurrency exchange WazirX (Zanmai Labs Pvt Ltd) and its directors for crypto transactions totaling ₹2,790.74 crores.
Due to anonymous identity associated with virtual assets, criminals get attracted to that, according to a written response in the Lok Sabha from the Financial Action Task Force (FATF).
Pankaj Chaudhary said, “The Directorate of Enforcement is investigating several cases related to cryptocurrency / virtual digital currency frauds wherein a few crypto exchanges have also been found involved in money laundering.”
Currently, they have held 20 individuals and have connected, seized, or frozen around ₹1,144.47 crores in illegal earnings.
The Enforcement Directorate (ED) has acted following the regulations outlined in the Prevention of Money Laundering Act (PMLA), 2002.
In this statement, Mr. Chaudhary mentioned that necessary actions have been taken, and a total of 12 Prosecution Complaints (PCs), along with two supplementary PCs, have been filed before the Special Court established under the PMLA.
The money seized by the ED in the cryptocurrency fraud showcases how serious the government is about fighting financial crimes. These actions also underline the importance of making the rules for cryptocurrencies more challenging and ensuring the industry has better safety measures.
Also Read: Indian Police Arrest $120M Crypto Ponzi Scheme Leaders
