During search, ED stumbles upon Rs 9 crore crypto wallet | India News
MUMBAI: An Enforcement Directorate (ED) operation has led officials to cryptocurrency worth Rs 9 crore in a wallet but they are not sure if they can retrieve the money.
The wallet is controlled by Dubai-based entrepreneur-investor Vinod Khute, who allows its operation only thrice a month when the wallet owner can sell crypto on the provided platform and can get money transferred into his account.
The amount was lying in one of the wallets ED traced during a search on the premises of a suspect in Pune, along with its access code. Sources said Khute has been luring investors for investing in cryptocurrency after offering attractive interest rates. ED suspects Khute intends to launch his own cryptocurrency and many “investors are falling prey”.
ED is investigating Khute, associated companies and D Dhanashree Multi State Co-op Credit Society Ltd controlled by him, for a Rs 125-crore Foreign Exchange Management Act (Fema) violation case. The ED alleged that Khute controlled VIPS Group of Companies engaged in illegal trades, crypto exchanges, and wallet services, and the proceeds were being siphoned off through hawala channels to various foreign countries.
ED will write to Pune police for investigating the group for fraudulent activities and for registering an FIR against them. ED will also write to RBI for taking required action against Dhanashree. ED can investigate a money laundering case under PMLA only if there is a police FIR against the suspect. ED recently searched Khute’s associates’ premises in Maharashtra for Fema violation and seized and froze assets (cash and bank balance) worth around Rs 18.5 crore.
ED officials initially hoped to get the crypto wallet currency as it was connected to a bank account of its owner. But a subsequent examination revealed that it cannot be accessed at any random point of time, but on specific days of the month, when the owner is allowed to make a transaction. ED alerted the bank stating that whatever money comes into the account is connected to the crypto wallet. ED believes it is unlikely that Khute may allow wallet’s operation and the agency is seeking technical help to ensure that he should not empty the wallet.
The wallet is controlled by Dubai-based entrepreneur-investor Vinod Khute, who allows its operation only thrice a month when the wallet owner can sell crypto on the provided platform and can get money transferred into his account.
The amount was lying in one of the wallets ED traced during a search on the premises of a suspect in Pune, along with its access code. Sources said Khute has been luring investors for investing in cryptocurrency after offering attractive interest rates. ED suspects Khute intends to launch his own cryptocurrency and many “investors are falling prey”.
ED is investigating Khute, associated companies and D Dhanashree Multi State Co-op Credit Society Ltd controlled by him, for a Rs 125-crore Foreign Exchange Management Act (Fema) violation case. The ED alleged that Khute controlled VIPS Group of Companies engaged in illegal trades, crypto exchanges, and wallet services, and the proceeds were being siphoned off through hawala channels to various foreign countries.
ED will write to Pune police for investigating the group for fraudulent activities and for registering an FIR against them. ED will also write to RBI for taking required action against Dhanashree. ED can investigate a money laundering case under PMLA only if there is a police FIR against the suspect. ED recently searched Khute’s associates’ premises in Maharashtra for Fema violation and seized and froze assets (cash and bank balance) worth around Rs 18.5 crore.
ED officials initially hoped to get the crypto wallet currency as it was connected to a bank account of its owner. But a subsequent examination revealed that it cannot be accessed at any random point of time, but on specific days of the month, when the owner is allowed to make a transaction. ED alerted the bank stating that whatever money comes into the account is connected to the crypto wallet. ED believes it is unlikely that Khute may allow wallet’s operation and the agency is seeking technical help to ensure that he should not empty the wallet.
