ED Now Attacks CoinSwitch Kuber, Company Says Engaging With All Stakeholders
The Directorate of Law Enforcement (ED) raided the premises of leading crypto exchange CoinSwitch Kuber on Thursday for alleged violations of the Foreign Exchange Management Act (FEMA).
Coindesk reported, citing an ED official, that five premises linked to the CoinSwitch Kuber were searched, including the residences of directors, the CEO, and official properties.
A spokesperson for the company told IANS that they were receiving queries from various government agencies.
“Our approach has always been one of transparency. Crypto is an early-stage industry with great potential and we are continuously engaging with all stakeholders,” the spokesperson added.
According to reports, the ED is investigating “multiple possible infractions under FEMA and other entities connected to CoinSwitch.”
Up to 10 crypto exchanges are under the ED’s radar for their alleged involvement in money laundering of around Rs 10 billion.
The agency recently froze bank assets of crypto lending platform Vauld worth Rs 370 crore due to its “predatory lending practices”.
The ED conducted raids on various premises of Yellow Tune Technologies Pvt Ltd in Bengaluru and froze assets belonging to the Flipvolt crypto exchange which operates the Vauld run by Darshan Bathija.
The company, like several other players offering crypto services in India, had received a summons from the ED office in July, “seeking certain information/documents”.
Earlier, the ED froze bank assets of crypto exchange WazirX worth Rs 64.67 crore.
On August 5, the ED raided the premises of one of the directors of Zanmai Lab Pvt Ltd, owner of the popular cryptocurrency exchange WazirX, and ordered their bank balances to the tune of Rs 64 to be frozen, 67 crore.
This action led the ED to 10 crypto exchanges in the country.
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