India Regulator Probes at Least 10 Crypto Exchanges on Money Laundering Allegations: Report

The Enforcement Directorate believes approximately 1000 crore rupees ($130 million) could have been laundered in the case.

AccessTimeIconAug 11, 2022 at 10:34 a.m. UTC
Updated May 11, 2023 at 3:38 p.m. UTC

India's Enforcement Directorate (ED) is investigating at least 10 crypto exchanges for allegedly assisting foreign firms launder money via crypto, according to an Economic Times report, citing people aware of the matter.

The money laundering investigation gained attention recently after the ED raided the properties of a WazirX director. This sparked an online spat between WazirX founder Nischal Shetty and Binance CEO Changpeng Zhao over whether Binance owns of the Indian exchange.

The government agency estimates the accused firms laundered more than 1,000 crore rupees, or around US$130 million, in the instant loan app case, adding that most of the allegations have a China link, the report said.

In an earlier press release, the ED had stated "summons were issued to the crypto exchanges" after conducting raids on the properties of a WazirX director. The ET report adds that at least 10 exchanges are under investigation.

The accused firms approached exchanges to buy crypto for more than Rs 100 crore (around $13 million) after which the tokens were sent to international wallets without enhanced due diligence or raising suspicious transaction reports (STR), according to the probe's current findings as stated in the report.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Amitoj Singh

Amitoj Singh is a CoinDesk reporter.