Cryptocurrency laundering with Pakistani involvement in India – Cointelegraph

An auditor from Gurugram in India, a company secretary and two businessmen were arrested by the Madhya Pradesh police cybercrime cell on Tuesday evening. The defendant was making transactions worth Rs 50 crores (~ $ 6.6 million) in connection with sending money to Pakistan in cryptocurrency.

This is the latest crypto laundering that Pakistan is involved in and that has been blown up in India.

Cryptocurrency laundering with Pakistani involvement in India

The matter came to light when an investigation into an Rs-1 online fraud was underway involving a businessman from Bhopal.

The businessman allegedly claimed to have invested in a spice trading company through four different bank accounts at the behest of a woman he was with.

Apparently, he met this woman through an online dating site in February 2021.

“The defendant founded counterfeit businesses on behalf of Indians and deposited the money obtained by fraud in the checking accounts of these counterfeit or counterfeit companies. They will then transfer the money to Pakistan through an international crypto exchange after converting it to crypto, ”Chaudhary told PTI.

So far, the police have been able to obtain 60 digital signatures from directors of letterbox companies, three laptops, four pen drivers, a mobile phone, crypto transaction reports, documents related to counterfeit companies, Aadhaar cards and PAN of various people. There were also four check books, a debit card and other documents, the official added.

The change in the way financial transactions are conducted after the pandemic created the market for digital assets in the form of cryptocurrencies. Despite the global economic crisis, the crypto world has seen an increase in total market capitalization. This trend has advantages and disadvantages for criminals who use the digital currency area for activities such as terrorist financing and money laundering.

“Illegal activity and terrorist financing may have increased dramatically as countries continue to fight Covid-19. Sources and funding sources have shifted sharply due to the tension associated with the pandemic. of cash flow, ”said BK Singh, Joint Commissioner for Retired Crime, told Delhi Police to India Narrative.

Since the blockchain is unregulated, Singh added that the rise in value of bitcoins should be studied in terms of whether they are being used for illegal activities.

Indeed, a FATF report last May alluded to the exploitation of the unregulated financial sector, which “creates additional opportunities for criminals to launder illegal money.”

Investments in the network soared after the Supreme Court lifted the Reserve Bank of India’s 2018 ban on supporting cryptocurrency exchanges in the country. According to reports, the Indian crypto portfolio investment market has grown from $ 200 million to $ 40 billion in the last year.

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