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27 September 2022
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India Investigates Ten Crypto Exchanges For Laundering Over $125 Million

India’s Enforcement Directorate is conducting an investigation on ten exchanges for laundering over Rs 1,000 Crore or $125M+ in crypto.

India’s Enforcement Directorate is conducting an investigation against ten cryptocurrency exchanges allegedly involved in laundering more than 1 billion rupees, equivalent to more than $125 million in digital currency.

According to The Economics Times, the exchanges (which have not yet been identified) were used by several companies accused of money laundering to make cryptocurrency purchases of more than 100 million rupees that were then sent to other international wallets, mostly linked to mainland China.

Exchanges Had a Poor Control of Their Users’ Activity

In addition, the sources noted that the exchanges collected KYC data of dubious provenance, as the tracked accounts belonged to people living in remote areas “with no connection to the transactions.”

However, the exchanges claimed they were in compliance with KYC regulations, despite not producing any suspicious transaction reports (STRs) that could have yielded any information about presumed money laundering.

Therefore, the failure to comply with the measures required by regulators made it more difficult to trace the account, which upon learning of the investigation, proceeded to withdraw their funds and log off, according to sources close to the investigation.

India’s Enforcement Directorate is conducting an investigation on ten exchanges for laundering over Rs 1,000 Crore or $125M+ in crypto.

India’s Enforcement Directorate is conducting an investigation against ten cryptocurrency exchanges allegedly involved in laundering more than 1 billion rupees, equivalent to more than $125 million in digital currency.

According to The Economics Times, the exchanges (which have not yet been identified) were used by several companies accused of money laundering to make cryptocurrency purchases of more than 100 million rupees that were then sent to other international wallets, mostly linked to mainland China.

Exchanges Had a Poor Control of Their Users’ Activity

In addition, the sources noted that the exchanges collected KYC data of dubious provenance, as the tracked accounts belonged to people living in remote areas “with no connection to the transactions.”

However, the exchanges claimed they were in compliance with KYC regulations, despite not producing any suspicious transaction reports (STRs) that could have yielded any information about presumed money laundering.

Therefore, the failure to comply with the measures required by regulators made it more difficult to trace the account, which upon learning of the investigation, proceeded to withdraw their funds and log off, according to sources close to the investigation.

News Source

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