ED seizes Rs 1,144 cr crime proceeds, arrests 20 persons in crypto fraud cases

Enforcement Directorate has seized proceeds of crime amounting to Rs 1,144 crore and arrested 20 persons in cases related to frauds in cryptocurrency

New Delhi: The Enforcement Directorate has seized proceeds of crime amounting to Rs 1,144 crore and arrested 20 persons in cases related to frauds in cryptocurrency/ virtual digital assets, Minister of State for Finance Pankaj Chaudhary said on Monday.

Further, under Foreign Exchange Management Act, 1999 (FEMA) assets amounting to Rs 270.18 crore have been seized under section 37A of FEMA and one show cause notice to cryptocurrency exchange Zanmai Labs Pvt Ltd, known as WazirX, and its Directors under FEMA for transactions involving cryptocurrencies worth Rs 2,790.74 crore has also been issued.

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In a written reply in the Lok Sabha, as per the Financial Action Task Force (FATF), the anonymity associated with virtual assets attracts criminals.

“The 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,” Chaudhary said.

The ED has taken action as per provisions of the Prevention of Money Laundering Act (PMLA), 2002.

As of date, proceeds of crime amounting to Rs 1,144.47 crores (approx.) have been attached/seized/frozen and 20 persons have been arrested. Further, 12 Prosecution Complaints (PCs) including 2 supplementary PCs have been filed before the Special Court, PMLA in these cases.