BENGALURU: After crypto platform WazirX and Bengaluru-based Yellow Tune Technologies, the Enforcement Directorate has searched offices of crypto exchange CoinSwitch Kuber for allegedly flouting Foreign Exchange Management Act ( FEMA) norms.
According to reports, the ED is looking at many potential violations under FEMA and since it did not receive the desired cooperation from the crypto exchange, it conducted searches on the official premises. A source confirmed the reports of searches at CoinSwitch offices and said that the law enforcement agency had summoned the exchange a month ago.
CoinSwitch Kuber is one of the many crypto exchanges where the ED has been conducting searches. When asked about it, the exchange’s spokesperson told TNIE that they received queries from various government agencies.
“Our approach has always been that of transparency. Crypto is an early-stage industry with a lot of potentials and we continuously engage with all stakeholders,” the spokesperson added.
Founded in 2017 by Ashish Singhal, Govind Soni, and Vimal Sagar Tiwari, and backed by investors including Andreessen Horowitz (a16z), Tiger Global, Sequoia Capital India, Ribbit Capital, Paradigm, and Coinbase Ventures, the exchange has over 18 million registered users.
Earlier this month, the ED had conducted searches on WazirX and said it froze bank assets worth Rs 64.67 crore. During the probe, ED found Zanmai Labs had created a web of agreements with Crowdfire Inc USA, Binance, and Zettai Singapore to obscure the ownership of the crypto exchange. It found that a large number of funds were diverted by the fintech firms to buy crypto assets and laundered abroad.