Cryptocurrency Use for Money Laundering Being Probed in 7 Cases, Rs. 135 Crore Attached: Minister to Lok Sabha

The Enforcement Directorate is investigating seven cases in which cryptocurrency has been used for money laundering and has so far attached proceeds of crime worth Rs 135 crore, Parliament was informed on Monday.

Law enforcement agencies have flagged usage of cryptocurrency by cybercriminals and cases investigated by the ED under the Prevention of Money Laundering Act (PMLA) reveals that the accused have laundered proceeds of crime (PoC) through the virtual currency, Minister of State for Finance Pankaj Chaudhary said in a written reply to the Lok Sabha.

“Directorate of Enforcement (ED) is investigating 07 cases under PMLA, 2002, in which cryptocurrency has been used for Money Laundering,” he said.

So far, the ED has attached PoC amounting to Rs 135 crore under the PMLA in these cases, the minister added.

To a query on whether the government has identified people involved in such activities in the country, Chaudhary said investigations conducted by the ED so far, revealed that some foreign nationals and their Indian associates have laundered the PoC through cryptocurrency accounts at certain exchange platforms.

In one of the cases, an accused has been arrested by the ED in 2020 for facilitating the foreign-related accused companies to launder the PoC by converting money generated out of crime into cryptocurrency and thereafter transfer to foreign countries. A prosecution complaint has been filed in this case before the PMLA Special Court.

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