ED seizes Rs 1,144 Crore Crime Proceeds, Arrests 20 persons in Crypto Fraud Cases

New Delhi(India), 08/08/23: The Minister of State for Finance Pankaj Chaudhary stated that, the Enforcement Directorate has confiscated criminal proceeds totalling ₹1,144 crore and detained 20 people in cases involving frauds involving cryptocurrencies and virtual digital assets on Monday.

Additionally, under the Foreign Exchange Management Act of 1999 (FEMA), assets worth ₹270.18 crore have been frozen under section 37A of the FEMA, and Zanmai Labs Pvt Ltd, also known as WazirX, and its directors have received a show-cause notice for transactions involving cryptocurrencies worth ₹2,790.74 crore.

According to a written response in the Lok Sabha from the Financial Action Task Force (FATF), criminals are drawn to virtual assets because of their anonymity. 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.”

In accordance with the Prevention of Money Laundering Act (PMLA), 2002 provisions, the ED has taken action. As of this writing, 20 people have been detained and about ₹1,144.47 crores in criminal profits have been attached, seized, or frozen. Additionally, 12 Prosecution Complaints (PCs) for these instances have been filed before the Special Court, PMLA, along with two extra PCs.