Recently the Enforcement Department (ED) arrested 20 persons in a crypto fraud case and seized RS. 1, 144 Crore of Crime proceeds as per provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The arrest was in cases related to fraud in cryptocurrency/ virtual digital assets. Further, under section 37A of the Foreign Exchange Management Act, 1999 (FEMA) assets amounting to Rs 270.18 crore have been seized and one show cause notice to cryptocurrency exchange Zanmai Labs Pvt Ltd, known as WazirX, and its Directors under FEMA for transactions involving cryptocurrencies worth Rs 2,790.74 crore has also been issued.
Section 37 A of the FEMA was about the Special provisions relating to assets held outside India in contravention of section 4.—(1) Upon receipt of any information or otherwise, if the Authorised Officer prescribed by the Central Government has reason to believe that any foreign exchange, foreign security, or any immovable property, situated outside India, is suspected to have been held in contravention of section 4, he may after recording the reasons in writing, by an order, seize value equivalent, situated within India, of such foreign exchange, foreign security or immovable property.
The Directorate of Enforcement is investigating several cases related to cryptocurrency / virtual digital currency frauds wherein a few crypto exchanges have also been found involved in money laundering.
Around 12 Prosecution Complaints (PCs) including 2 supplementary PCs have been filed before the Special Court, PMLA in relation to this case.
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