Crypto Money Laundering: CoinSwitch Kuber Premises Said To Be Raided By ED Over Loan App Scam

Crypto Money Laundering: CoinSwitch Kuber Premises Said To Be Raided By ED Over Loan App Scam

CoinSwitch Kuber, one of the biggest crypto exchanges in India, reportedly faced a raid by the Directorate of Enforcement (ED). As per a report by the Economic Times, based on source inputs, five premises linked with CoinSwitch Kuber were probed in connection with ED’s money laundering probe into instant micro loan apps. CoinSwitch Kuber, which is backed by Andreessen Horowitz and Sequoia Capital India, has now become the third exchange to come under ED scanner for allegedly diverting proceeds of crime raised by 365 loan apps that offered exorbitant rates of interest.

A CoinSwitch Kuber spokesperson reportedly said in an ambiguous statement, “We receive queries from various government agencies. Our approach has always been that of transparency. Crypto is an early-stage industry with a lot of potential and we continuously engage with all stakeholders.”

Earlier this month, the ED froze assets worth Rs 64.67 crores of Mumbai-headquartered crypto exchange WazirX. The law enforcement agency also searched director Sameer Mhatre. Nischal Shetty, another director of WazirX, is said to be in the UAE. 

The ED said that when the crackdown began, loan app firms “used the cryptocurrency route to take money out of the country.” The agency said that most of the money was transferred to Hong Kong in the form of crypto assets purchased via WazirX. “We found evidence regarding the transfer of money to crypto assets.”

Commenting on the searches, the agency said that they are “insignificant” as most of the data is “on the cloud and employees work from home.”

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In case of another crypto platform Vauld, it was said that a shell entity called Yellow Tune Technologies Pvt. Ltd. was used to launder proceeds of crime using its wallets.

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