Enforcement Directorate is currently investigating a major cryptocurrency racket, wherein as a part of their investigation, they have found five companies that are involved in money laundering from Dubai to India.
These companies have started investing in Dubai’s real estate market through cryptocurrency, and then the investment in Indian currency is inflicted into the market through remittances.
In this case, exclusive information from top ED sources has revealed that cryptocurrencies are being invested in properties in Dubai.
Among the companies involved, Zanmai Labs Pvt Ltd, known as WazirX, is under the scanner.
Explaining the modus operandi, senior ED officials said that earlier companies would launder money by investing in properties in India in exchange for gold. However, now with them stashing black money in crypto, they have resorted to investing in properties in Dubai in lieu of cryptocurrency.
Why Dubai?
ED while investigating the case has seized more than Rs 1,445 crores in this case.
“Because thousands of crores of rupees are that being laundered in countries such as the United States, only a small amount of transactions are allowed. But, here this involves transactions in thousands of crores of rupees, which is only possible by investing them in Dubai’s property market,” said a senior officer from ED.
What Is The Modus Operandi?
With the help of foreign exchange operators and tour agents, data of thousands of passports are collected. These operators then share these passport details with these companies. The amount transferred in crypto is then used as travel remittance to get them back in Indian currency as travel remittance.
What Is This Cryptocurrency Case About?
Earlier this month, Minister of State for Finance, Pankaj Chaudhary, mentioned in parliament that ED is investigating several cases related to cryptocurrency or virtual digital currency frauds wherein a few crypto exchanges have also been found involved in money laundering.
By then, 20 persons were arrested and Rs 1,144.5 crore was seized or frozen as criminal proceeds in connection with cryptocurrency frauds.
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