The Enforcement Directorate (ED) conducted a comprehensive investigation into a cryptocurrency racket and identified five companies engaged in money laundering from Dubai to India.
During this investigation, the Free Press Journal obtained information from senior ED officials, revealing how the five companies discreetly laundered money. Initially, cryptocurrency was invested in properties in Dubai and then transferred to India, leaving no trace of money laundering during the transactions.
To facilitate this operation, these companies collaborated with foreign exchange operators and tour agents to collect data from thousands of passports. These passport details were utilised for their operations.
According to a senior ED officer, the investigation revealed that cryptocurrency had been invested in properties in Dubai. These funds were received by associated companies within the syndicate in the form of assets in Dubai. With the assistance of foreign exchange operators and tour agents, data from thousands of passports was collected and used by these suspected companies. The crypto funds were then transferred as travel remittances to convert them back into Indian currency. Among the five companies involved, money exchange firm Zanmai Labs Pvt Ltd, known as WazirX, is under scrutiny.
Travel remittance is a non-commercial transfer of money by foreign workers, diaspora community members, or citizens with familial ties abroad to support household income in their home country or homeland. It is used for money laundering without the knowledge of the account holder.
Explaining the modus operandi, senior ED officials said that previous investments were made in properties in India in exchange for gold. However, these companies now shifted to investing in properties in Dubai using cryptocurrency. This change in approach is because of the fact that in countries such as the US, only small transactions are allowed, while these operations involve transactions in thousands of crores of rupees.
In August, Minister of State for Finance Pankaj Chaudhary said in the Parliament that the ED is investigating several cases related to cryptocurrency or virtual digital currency frauds, with a few crypto exchanges also found to be involved in money laundering. By that time, 20 individuals had been arrested, and ₹1,144.5 crore had been seized or frozen as criminal proceeds in connection with cryptocurrency frauds.
