CoinSwitch Kuber, one of India’s largest crypto exchanges, was reportedly raided by the Enforcement Directorate (ED) earlier this week for allegedly being involved in a money laundering scam. money-based instant micro-loan applications. However, on Saturday, the platform’s CEO, Ashish Singhal, denied that ED’s visit to its offices in Bengaluru was unrelated to money laundering or the Prevention of Money Laundering Act 2002. silver (PMLA). He clarified in a tweet thread that the ED has engaged with CoinSwitch Kuber “in regards to the operation of our crypto platforms/exchanges. We are fully cooperating with them.”
“As an industry leader in India and one of the most compliant crypto platforms, we have engaged in constructive dialogues with various stakeholders to help them understand our business models, compliance best practices, thereby bringing more clarity on these issues,” Singhal said. Earlier media reports, based on sources, said five locals linked to CoinSwitch Kuber were probed in connection with ED’s investigation of money laundering in instant micro-loan applications. Singhal’s latest clarification denies all such reports.
Many media are doing the rounds of ED Bangalore’s recent engagement with @CoinSwitchKuber. So let me clear the air.
• First of all, the events of the past few days are not about money laundering or PMLA.
Here is what happens:
— Ashish Singhal (@ashish343) August 27, 2022
Earlier this month, the ED froze assets worth Rs 64.67 crores of Mumbai-headquartered crypto exchange WazirX. Law enforcement also searched director Sameer Mhatre. Nischal Shetty, another director of WazirX, is said to be in the United Arab Emirates.
The ED said that when the crackdown began, lending app companies “used the cryptocurrency route to get money out of the country.” The agency said most of the money was transferred to Hong Kong in the form of crypto assets purchased through WazirX. “We found evidence regarding the transfer of money to crypto assets.”
Commenting on the research, the agency said it was “meaningless” because most of the data is “in the cloud and employees are working from home”.
In the case of another Vauld crypto platform, it was said that a shell entity called Yellow Tune Technologies Pvt. ltd. was used to launder proceeds of crime using his wallets.
Editor’s note: This report was updated on August 27 (3:22 PM) to reflect clarification from CoinSwitch Kuber CEO Ashish Singhal on the reason for the ER visits.
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