Enforcement Directorate (ED) authorities carried out a raid on CoinSwitch Kuber’s five premises on August 25 in connection with alleged violations of the Foreign Exchange Management Act (FEMA). CoinSwitch Kuber, supported by Sequoia Capital India and Andreessen Horowitz, is the third exchange under investigation for allegedly diverting profits of crime collected through 365 fast lending applications by providing loans at high interest rates.
According to the reports, these 5 premises included the CEO’s home, the director’s homes, and the official properties. The exchange responded that we get inquiries from numerous government authorities without confirming or denying ED raids. “We have always taken a transparent approach. Our approach has always been one of transparency. Crypto is an early-stage industry with a lot of potential and we continuously engage with all stakeholders,” the spokesperson added.
The ED is looking into “multiple possible contraventions under FEMA and other entities that are connected to CoinSwitch”.
The ED began investigating at least 10 crypto exchanges earlier this month for allegedly aiding in laundering more than Rs 1,000 crore that has been connected to the accused entities in the instant loan app case. These platforms are frequently connected to China.
The agency has seized assets worth Rs 370 crores, including the crypto balances at the Flipvolt crypto exchange, in another episode of its campaign against crypto exchanges. The Indian people were served by the crypto lender Vauld through its domestic company Flipvolt Technologies. Previously, the ED had also searched for a director of Zanmai Labs, which runs the crypto exchange WazirX, and ordered the freeze of bank accounts worth Rs 64.67 crore. WazirX has underlined that the company adheres to KYC regulations and has a zero-tolerance attitude towards any illicit operations.