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Indian Crypto Trader Arrested for Money Laundering

Indian Crypto Trader Arrested for Money Laundering
  • The Enforcement Directorate arrested Indian crypto trader Naisar Kothari.
  • This is due to his alleged involvement in a money-laundering scheme linked to an online betting scam case in China.
  • The scam is approximately to be worth more than INR 1,000 Crore.
  • Moreover, cryptocurrency scams is not a new practice in India.

The Enforcement Directorate (ED) arrested an Indian cryptocurrency trader named Naisar Kothari in relation to his money-laundering probe linked to an online betting scam case in China.

Indian crypto trader arrested for using USDT in scam

Authorities caught Kothari, an occupant of Bhavnagar in Gujarat, for violating the Prevention of Money Laundering Act (PMLA). Moreover, the court sent him to ED custody until December 22. As per the central law enforcement agency, the scam is approximately worth more than INR 1,000 Crore.

Kothari found to have purchased Tether (USDT) stablecoin cryptocurrency on behalf of one of the accused companies. In addition, he transferred them to unknown wallets on foreign exchanges.

Enforcement Directorate adds,

.. [the] accused person had knowingly and actively involved himself in layering the proceeds of crime and hence he was arrested.

The case came after the ED conducted multiple raids on companies. Added to this, directors and chartered accountants allegedly ran illegal online betting. More so, the betting operations on websites were hosted outside India and operated in China.

Furthermore, the ED’s case is in reference to a Telangana police first information report (FIR). In detail, they filed the FIR against Linkyun Technology Private Limited, Dokypay Technology Private Limited, and others. Additionally, the police also arrested three people including a Chinese national.  Even more, the ED subsequently arrested the three under criminal sections of the anti-money laundering law.

In particular, cryptocurrency scams is not a new practice in India. Nevertheless, between 2017 and 2019, Indian investors lost over $500,000,000 in crypto scams. Recently, Indian police investigated Pluto Exchange for swindling over $270,000 from 43 crypto investors.

Crypto trading has enticed Ananthi Reeta to write for CoinQuora. She consistently contributes news and feature articles. She has covered several different blockchain and crypto niches, especially altcoins.