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India and US collaborate to crackdown on a Multi-Billion Dollar Digital Currency Scam

India and US crackdown on Multi-Billion Dollar Digital Currency Scam

A joint investigation by the Enforcement Directorate (ED) of India along with the United States’ Federal Bureau of Investigation (FBI) has unleashed the discovery of one of the largest digital currency scams ever run – a gigantic Rs 3000 crore ($360 billion) one. The raid was undertaken on the basis of the links to India which had been dug out earlier by the inquiry of the FBI.

What was the fraud?

The primary factor which was the framework of the fraud was changing of drug profit into the cyber currency system and then shifting them outside of India. The most prominent example of seizure is when the FBI raided digital coins with nominal markets valuation of Rs 1,500 crore around ($180 million). This marks a huge victory in the war against cross border financial crimes involving digital currencies.

On 27th of April, after the raids on 26th of April, ED arrested Parvinder Singh in Haldwani Uttarakhand. These seizures were just some elements of a larger, powerful evidenced-gathering process on the ED’s behalf during the case. Of primary importance is the fact that the ongoing investigation is backed by an FBIs’ team which is in India, casting light on the level of world-wide cooperation.

A worrying trend

The case underscores a worrying development by global criminals who utilize the digital currencies and advanced laundering tools in defiance of law enforcement agencies. The execution of this exercise illustrates how difficult it is for agencies to track digital currencies. Agencies see this as a huge threat to international financial security.

India, as turn, is augmenting its networking with other international organizations in order to overcome the complex nature of the present day financial crimes. The focal point of these partnerships is not only focusing on money laundering but also specifically related illegal activities like round tripping and tax evasion. The fact that the Indian authorities’ initiative is only one element of a more comprehensive set of measures to counter the risks associated with using cryptocurrencies for illegal money flows across various jurisdictions makes the effect more significant.

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