Even as the cryptocurrency bill and digital currency regulation is yet to be tabled in the Parliament, the enforcement directorate (ED) is already investigating seven cases wherein crypto proceeds worth Rs 135 crore has been used for money laundering.
One of the cases was a scam where some people in Kerala were duped with offers to invest in a fake crypto firm Morris Coin. ED had attached assets worth Rs 36.72 crore in connection with the fraud.
In another such scam, Karnataka has been under lens for over a year now.
Late last month, the Nagpur police arrested 11 people linked with a crypto scam that allegedly duped investors out of $5.36 million (Rs 40 crore).
Minister of State for Finance Pankaj Chaudhary told the Lok Sabha, “Investigations conducted by the ED revealed that some foreign nationals and their Indian associates have laundered the PoC (point of contact) through cryptocurrency accounts at certain exchange platforms.”
“In one of the cases, an accused has been arrested by the ED in 2020 for facilitating the foreign-related accused companies to launder the PoC by converting money generated out of crime into cryptocurrency and thereafter transfer to foreign countries.
A prosecution complaint has been filed in this case before the PMLA Special Court,” Chaudhary added.