The government has said that law enforcement agencies have received reports of cybercriminals using cryptocurrency for money laundering.
Finance Minister Pankaj Chaudhary recently informed Lok Sabha that the Directorate of Enforcement (ED) is investigating seven cases under the Prevention of Money Laundering Act 2002 (PMLA), in which cryptocurrency has been used for money laundering.
“Cases investigated by ED under the law reveal that (the) accused have laundered the proceeds of crime (PoC) through cryptocurrency,” the minister informed Lok Sabha while responding to a question whether the government is responding to the question. is aware of the use of cryptocurrency for money laundering by cyber criminals.
Mr Chaudhary further said that investigations conducted by ED have revealed that some foreigners and their Indian employees have laundered PoC through cryptocurrency accounts on certain exchange platforms.
“In one such case, in 2020, a suspect was arrested by ED for helping foreign-related accused companies to launder the PoC by converting money generated from crime into cryptocurrency and then transferring it abroad . In this case, a lawsuit has been filed with the Special Court, PMLA. So far, ED has confirmed a PoC of about Rs 135 crore under PMLA in the above cases,” the minister further said in the House of Representatives.