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The Implementation DirectorateCoinSwitch Kuber, or ED, has raided the headquarters of Indian cryptocurrency exchange CoinSwitch Kuber, said a report citing an official of the Bangalore cell of the central agency. The official added that searches were conducted in five buildings belonging to the cryptocurrency company regarding the country Foreign Exchange Management Law (FEMA).
“We are looking into several potential violations under the Federal Emergency Management Agency and other associated entities,” the official was quoted as saying by Coindesk. “Because we did not get the required cooperation, we conducted searches on (the residences of) the directors and CEO and official premises” of the exchange.
When asked about the details of the research, a CoinSwitch spokesperson told News18.com, “We receive inquiries from various government agencies. Our approach has always been transparency. Crypto is an industry in its early stages with a lot of potential and we are constantly communicating with all stakeholders.”
Earlier in July, senior CoinSwitch executives, including Chief Business Officer Sharan Nair and the company’s chief financial officer and CEO Krishna Hegde have all left the company saying they want to start their own businesses.
“We are very excited about cryptocurrencies and believe they are here to stay. We will continue to receive guidance from the CoinSwitch team, which has been my home for the past four years as we build India Nair was quoted by Business Today as saying.
The ED raid comes weeks after the central agency raided the offices of Zanmai Labs, the operating agency for India’s largest WazirX crypto exchange. On August 5, the central agency conducted searches at the premises of a director of Zanmai Lab Pvt Ltd and issued an order to freeze its bank balances at Rs 64.67 crore. This action led ED to 10 crypto exchanges in the country. Its investigation against the crypto exchange has been linked to its ongoing investigation against a number of Chinese loan applications (mobile applications) operating in India.
As many as 10 cryptocurrency exchanges are under ED’s radar for their alleged involvement in money laundering of around 10 billion rupees. The agency recently froze the assets of a crypto-loan bank of Rs 370 crore due to “predatory lending practices.” ED conducted searches at various venues for Yellow Tune Technologies Pvt Ltd in Bengaluru, and froze the assets of the Flipvolt crypto exchange that runs Darshan Bathija led by Fuld.
The CEO is conducting a money laundering investigation against several Indian NBFC companies and their fintech partners due to their predatory lending practices.
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