What Actions Did the ED Take Against Crypto Frauds Worth Rs 4,189 Crore?
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Synopsis
The Enforcement Directorate's latest crackdown on crypto frauds has resulted in significant seizures and arrests. This comprehensive investigation highlights the government's commitment to combating financial crimes in the digital asset space. Read on to discover the extensive measures being taken against these illicit activities.
Key Takeaways
- The ED has seized proceeds of crime totaling Rs 4,189 crore from crypto fraud cases.
- A total of 29 individuals have been arrested in relation to these investigations.
- One accused has been identified as a fugitive economic offender.
- The government has made VDAs reporting entities under the PMLA 2002.
- Tax evasion linked to VDAs is being actively monitored by the CBDT.
New Delhi, Dec 8 (NationPress) The Enforcement Directorate (ED) has conducted investigations into numerous crypto-related cases under the Prevention of Money Laundering Act (PMLA). It has attached, seized, and frozen proceeds of crime amounting to Rs 4,189.89 crore, apprehended 29 individuals, and filed 22 prosecution complaints. Furthermore, one suspect has been declared a fugitive economic offender, as reported to Parliament on Monday.
The government has categorized virtual digital assets (VDAs) under the PMLA 2002, designating virtual asset service providers (VASPs) as reporting entities. They are now obligated to submit specified and suspicious transaction reports to FIU-IND. These reports are scrutinized and shared with law enforcement agencies for further action, as detailed by Pankaj Chaudhary, the Union Minister of State for Finance, during the Lok Sabha session.
“One individual has been designated a Fugitive Economic Offender. The Prohibition of Benami Property Transactions Act, 1988, and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 apply to all assets, including VDAs,” he added.
Additionally, the Central Board of Direct Taxes (CBDT) has identified instances of tax evasion associated with cryptocurrencies and VDAs on several occasions. The Income Tax Department acts according to the Income Tax Act, 1961.
“During search and seizure operations, undisclosed income from VDA transactions totaling Rs 888.82 crore has been uncovered. Under the CBDT’s NUDGE (Non-Intrusive Usage of Data to Guide and Enable) initiative, 44,057 communications have been sent to taxpayers who engaged in VDAs but failed to report these in Schedule VDA of their Income Tax Returns (ITRs),” noted Chaudhary.
Advanced data analytics tools, project insights, and internal databases are employed to align VDA transaction information with disclosures in ITRs. TDS returns filed by VASPs and taxpayers’ ITRs are also examined to detect discrepancies and enact necessary measures.
The government is also implementing capacity-building measures to enhance the oversight and investigation of VDA-related transactions.
“Training programs, workshops, ‘Chintan Shivirs’, and sessions focusing on digital forensics, blockchain analysis, legal frameworks, and digital evidence are regularly held. Officers receive specialized short-term training in digital forensics at NFSU, Goa, to assist in identifying and tracing VDA-linked transactions from collected data,” the minister stated.
Point of View
I believe the government's proactive approach in addressing crypto fraud is commendable. It demonstrates a commitment to safeguarding the financial system and ensuring that all transactions comply with legal standards. The actions taken by the Enforcement Directorate reflect a necessary vigilance in an ever-evolving digital landscape.
NationPress
09/12/2025
Frequently Asked Questions
What is the Enforcement Directorate (ED)?
The Enforcement Directorate (ED) is a financial law enforcement agency in India responsible for enforcing economic laws and combating financial crimes such as money laundering and foreign exchange violations.
What are virtual digital assets (VDAs)?
Virtual Digital Assets (VDAs) are digital representations of value that can be traded or transferred electronically. They include cryptocurrencies and tokens.
What does the Prevention of Money Laundering Act (PMLA) entail?
The Prevention of Money Laundering Act (PMLA) is an Indian law aimed at preventing and combating money laundering by imposing obligations on financial institutions and enabling authorities to investigate and prosecute offenders.
What actions can be taken against tax evasion related to cryptocurrencies?
Actions against tax evasion related to cryptocurrencies can include investigations by the Income Tax Department, penalties, and legal proceedings under the Income Tax Act.
How does the government monitor VDA transactions?
The government utilizes data analytics tools and internal databases to match VDA transactions with disclosures in Income Tax Returns (ITRs) to ensure compliance and detect discrepancies.
