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
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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.


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Amitoj Singh

Amitoj Singh is a CoinDesk reporter.


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