The Enforcement Directorate (ED) has arrested 20 persons and seized or frozen criminal proceeds of ₹1,144.5 crore in connection with crypto currency frauds, the Finance Ministry informed Lok Sabha on August 7.
Minister of State for Finance Pankaj Chaudhary said the ED is investigating several cases related to crypto currency or virtual digital currency frauds wherein a few crypto exchanges have also been found involved in money laundering.
Necessary action as per provisions of Prevention of Money Laundering Act (PMLA), 2002 has been taken and 12 Prosecution Complaints (PCs), along with two supplementary PCs have been filed before the Special Court, PMLA, Mr. Chaudhary said in response to a query from DMK MP Velusamy P.
“Furthermore, under Foreign Exchange management Act, 1999 (FEMA) assets amounting to ₹270.18 crore have been seized under Section 37A of the Foreign Exchange Management Act (FEMA) and one showcause notice to cryptocurrency exchange Zanmai Labs Pvt Ltd, known as WazirX, and its Directors under the FEMA for transactions involving cryptocurencies worth ₹2,790.74 crore has also been issued,” the Minister said.’
As per the Financial Action Task Force (FATF), the anonymity associated with virtual assets do attract criminals, who have used them to launder proceeds from a range of offences, Mr. Chaudhary said.
