The Enforcement Directorate identified five companies involved in money laundering from Dubai to India, after the completion of an investigation into the cryptocurrency racket.
Initially, Dubai’s properties were bought through cryptocurrency and then transferred to India, without leaving any traces of transaction involving this money laundering. However, these five companies are involved in this laundered money, as revealed by senior ED officials during the investigation.
A senior ED officer also disclosed that the funds were acquired by affiliated companies within the syndicate by assets in Dubai, and the funds have been invested in properties in Dubai.
These companies connected with foreign exchange operators and travel agencies to gather information from the thousands of passports, which can be used for operations and can execute the whole operation.
To convert the crypto funds back into Indian currency, they were transferred as travel remittances, which are used for money laundering without the knowledge of the account holder. A money exchange company, Zanmai Labs Pvt. Ltd., known as WazirX, is one of the five companies, and currently, the company is under scrutiny.
Previously, in the exchange of gold, the investment was made in Indian properties, but now the companies are shifting investment in Dubai’s property using cryptocurrency. This change happens as only small transactions are allowed by some countries like the US, while to perform these kind of operation transactions have to be made in thousands of crores of rupees.