The Enforcement Directorate (ED) is probing at least 10 crypto currency exchanges for allegedly laundering more than Rs 1,000 crore identified as proceeds of crime from firms under investigation in the Chinese instant loan app case, sources told us.
The probe has unearthed instances of the accused firms approaching the exchanges to buy crypto coins for more than Rs 100 crore and crypto coins being sent to international wallets, they said. The exchanges did not conduct any enhanced due diligence and even failed to raise suspicious transaction reports (STRs), the sources added.
The ED is expected to question officials of the crypto exchanges under investigation again next week, said an industry executive.
In many cases, know-your-customer (KYC) details collected by the exchanges were found to be dubious, another source said. “They were traced to some persons living in remote areas or a tier-2 or tier-3 town, having no connection with the transactions,” said the person.
