India’s Directorate of Enforcement conducted searches Thursday at CoinSwitch Kuber’s offices and homes, as well as its CEO (and directors) According to reports, the financial crime investigation agency is investigating a possible violation by the Foreign Exchange Maintenance Act (FEMA).
According to media reports, the searches were ordered after ED officials discovered that CoinSwtich Kuber’s top executives, an India-focused a16z supported crypto exchange, had not cooperated with the investigation.
“We get queries from different government agencies. Transparency has been our approach. “Crypto is an early-stage market with lots of potential, and we continually engage with all stakeholders,” a CoinSwitch spokesperson stated in a statement regarding the latest developments.
ED Probing Indian Exchanges
CryptoPotato reported this month that ED was looking into ten cryptocurrency exchanges accused of laundering more than $125 million. These trading platforms were reportedly used to facilitate the purchase of cryptocurrencies from dubious Indian businesses worth INR 10 Billion and the transfer of these assets into international wallets. Most of the transactions were linked to Chinese illegal online betting sites.
Similar to the previous case, ED searched the home of WazirX’s director early this month and frozen a bank account worth nearly $8 million. This incident sparked a Twitter dispute between Changpeng Zhao (CZ), Binance CEO, and WazirX CEO Nischal Shitli. CZ expressed concern about WazirX’s management, but Shetty claimed that Binance owns the exchange.
ED has recently frozen the Flipvolt Crypto Exchange bank account. This exchange also owns Defi platform Vauld and was subject to another crackdown. Flipvolt was accused by the investigating agency of helping fintech companies avoid regular banking channels and transfer large amounts of money through predatory lending.
CoinSwitch: India’s Second Crypto Unicorn
CoinSwitch Kuber, a cryptocurrency company, closed a $260million Series C financing round in October from Andreessen Horowitz (a16z), and Coinbase Ventures.
The company was valued in excess of $1.9 billion. According to CoinSwitch Kuber CEO Ashish Singhal, he had argued for regulatory clarity, certainty and peace in a recent interview. CoinSwitch, a venture capital firm, announced the launch of a Web3 Discovery Fund in early March.
CryptoPotato’s first post was entitled India’s ED Searches for CoinSwitch Kuber CEO and Directors
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