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Economic Fraud

Cryptocurrencies Used For Money Laundering, Enforcement Directorate Arrests Trader



New Delhi: Enforcement Directorate (ED) has arrested Naisar Kothari, a Crypto-currency Trader, for his involvement in the offence of money laundering under Prevention of Money Laundering Act, 2002(PMLA) in a case related to the online betting scam and international hawala of over Rs 1,100 Crore.

ED initiated an investigation under PMLA against M/s Linkyun Technology Private Limited and M/s Dokypay Pvt Ltd and others based on an FIR registered by Hyderabad CCS Police under sections 420 and 120B of IPC on the basis of a complaint received from one of the victims who had lost money by investing in a betting App.

According to senior ED officials, the investigation had revealed that apart from providing payment aggregator re-seller services to banned Apps in India, these Chinese owned Companies were indulging in International hawala and illegal activities.

“Login credentials and dongles for HSBC Bank Accounts and Payment Aggregators like Paytm, Cashfree, Razorpay etc were shipped to China and were being operated from there,” an official said.

Three persons, including one Chinese national, were arrested earlier in this case and a chargesheet has been filed against them in the PMLA Court.

Further investigation of money trail revealed that a large amount of money was being inexplicably transferred to some Crypto-currency traders based in Bhavnagar.

During the investigation, it is revealed that accused Naisar Kothari had purchased USDT Crypto-currency on behalf of the accused company and had transferred them to unknown wallets on foreign exchanges.

Investigation revealed that Naisar Kothari had knowingly and actively involved himself in layering the proceeds of crime and was arrested by ED under Section 19 of the PMLA.

The accused were produced before the ED PMLA Court and the Court has granted Enforcement Custody from December 13 to 22.