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The Directorate of Enforcement (ED) has conducted searches at offices of crypto firm HPZ token because of its alleged links to Chinese loan apps
The probe was under the Prevention of Money Laundering Act, sources told Business Today.
Searches by the ED have been conducted at 16 places so far.
It is worth noting that RoC Hyderabad had registered a case against HPZ token earlier this year. Under a scheme by HPZ Token, promoters collected crores of rupees claiming that the funds would be used to mine cryptocurrencies but they did not follow through.
It is worth noting that several other cryptocurrency firms, especially crypto exchanges like CoinDCX, CoinSwitch Kuber, WazirX and others have been probed by the ED under PMLA.
The ED had frozen bank assets worth Rs 64.67 crore belonging to one of WazirX crypto exchange’s director Sameer Mhatre in August. The exchange was under investigation in relation to accusations of money laundering via crypto assets. The funds were unfrozen on Monday.
CoinSwitch Kuber was also probed by the ED. Five premises tied to the crypto exchange were searched by the investigative agency. But Ashish Singhal, co- founder of the exchange denied that the investigation was due to money laundering. He said, “First of all, the last few days’ events are not about money laundering or PMLA.”
He took to Twitter to say,
There are many media reports doing the rounds about the recent engagement of ED Bangalore with @CoinSwitchKuber. So let me clear the air.
• First of all, the last few days’ events are not about money laundering or PMLA.
Here’s what is happening:
Also Read: Indian origin man pleads guilty in Coinbase crypto insider trading scam – BusinessToday
Also Read: CoinSwitch’s CEO says ED raids not related to money laundering; cooperating with probe – BusinessToday
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