CoinSwitch Kuber, one of the largest crypto exchanges in India, has reportedly faced a raid from the Enforcement Directorate (ED). According to a report by the Economic Times, based on source entries, five premises linked to CoinSwitch Kuber were probed as part of ED’s investigation of money laundering in instant micro-loan applications. CoinSwitch Kuber, which is backed by Andreessen Horowitz and Sequoia Capital India, has now become the third exchange to come under the ED scanner for allegedly embezzling proceeds of crime generated by 365 lending apps that offered sky-high interest rates.
A spokesperson for CoinSwitch Kuber reportedly said in an ambiguous statement, “We are receiving requests from various government agencies. Our approach has always been one of transparency. Crypto is a start-up industry with a lot of potential and we are continuously engaging with all stakeholders. »
Earlier this month, the ED froze assets worth Rs 64.67 crores of Mumbai-headquartered crypto exchange WazirX. Law enforcement also searched director Sameer Mhatre. Nischal Shetty, another director of WazirX, is said to be in the United Arab Emirates.
The ED said that when the crackdown began, lending app companies “used the cryptocurrency route to get money out of the country.” The agency said most of the money was transferred to Hong Kong in the form of crypto assets purchased through WazirX. “We found evidence regarding the transfer of money to crypto assets.”
Commenting on the research, the agency said it was “meaningless” because most of the data is “in the cloud and employees are working from home”.
In the case of another Vauld crypto platform, it was said that a shell entity called Yellow Tune Technologies Pvt. ltd. was used to launder proceeds of crime using his wallets.
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