ED raids CoinSwitch Kuber to investigate financial crimes and checked five places that have connections with Indian cryptocurrency exchange CoinSwitch Kuber on Thursday, 25 August, having linked with money laundering by the microloan apps.
What did CoinDesk say officially?
It told that they are focusing on a lot of contraventions under FEMA and other entities which have connections with it. They have conducted searches on locations of directors, the CEO & official locations because they did not receive the desired cooperation.
However, in this regard, you should know that the exchange could not confirm or deny the raids. It told The Economic Times that it got queries from different government agencies and took a transparent approach.
But after a while, CoinSwitch Kuber’s major executives left this company in July. Business Today said that Chief Business Officer Sharan Nair and Krishna Hegde, the Chief Financial Officer and senior executive Krishna Hegde, left it. These left the exchange to begin the venture.
Enforcement Directorate raided a minimum of two other exchanges after a week. ED raided WazirX Director Sameer Mhatre on 3 August. After that, it ordered a freeze on the bank assets of the exchange worth Rs 64.67 crore.
After some days, on 12 August, according to the agency, ED raided different locations linked with the Flipvolt cryptocurrency exchange. In addition, it froze the bank balances, payment gateway & crypto balances of Rs 370 Crore. Vauld, the crypto lender, used Flipvolt Technologies to extend the services to Indian residents.
As per the Enforcement Directorate (ED), two officials come from the Bengaluru cell. According to an official who said the crypto news portal Coindesk, they motive contraventions under FEMA, which is one of their motives.
What did CoinSwitch Kuber spokesperson say on Enforcement Directorate comments?
This spokesperson replied on ED raids that they get questions from government agencies. Their approach has always been that of transparency. In this case, one thing about crypto you should know is that it is a previous-stage industry providing multiple potentials. Besides, they have been engaging with all stakeholders.
What did Sharan Nair say about it?
He said in this regard that they are passionate about crypto and believe it is here to stay. They have continued taking guidance from the CoinSwitch team, and it has remained their home turf for the last four years because they made India into the Web3 hub of the world.
Enforcement Directorate is probing Zanmai Labs. Hence, you should know that it is the Indian entity that can operate WazirX for money laundering. It is the Nischal Shetty-led crypto exchange.
In addition, the investigation found that the ED raided one of the directors who is belonging from WazirX. In this regard, the central agency issued an order where it says to stop bank balances of Rs 64.67 crore. Besides, it also asked for more records in July to investigate cases of forex crimes.