The Enforcement Directorate(ED) has unearthed a Rs 3,000 crore scam in digital currencies based in a joint international operation based on inputs received from the US agency Federal Bureau of Investigation(FBI), said people with direct knowledge of the matter.
The agency arrested an individual Parvinder Singh from Uttarkhand's Haldwani on April 27 following raids that were conducted on April 26. A special team of the FBI is also in India regarding the case, sources said
The ED entered into the investigation after the FBI launched a probe into the operation and found a link to India.
The modus operandi of the case involves the use of illicit proceeds of money received from the drug trade were converted into digital currency and remitted outside India. The US FBI has already seized digital currency assets worth Rs 1,500 crore.
This is one of the cases of cross-border crime where international agencies have worked in coordination to effectively bring down a money laundering syndicate. During the raids that were conducted on Friday, ED recovered several important documents about the case and the information is also being shared with the FBI on the same, the people cited above added. However, there is another accused in the case who is absconding according to the ED probe.
This case assumes significance as global wrongdoers have started using digital currencies and cross-border laundering of money to stay out of the radar of investigative agencies.
The Centre has been actively working with global enforcement agencies towards curbing cross-border financial crime. People cited above added that Indian enforcement agencies are working in collaboration with various international agencies in cases involving money laundering, round-tripping and tax evasion. In some such cases, the agencies have also observed proceeds of crime being converted into cryptocurrencies which were moved across various geographies.
With inputs from Shankar Anand of News18 India.
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