On US’s plea, CBI seeks to freeze crypto assets

ACting on a bespeak from the US section of justness (DOJ), the telephone exchange Bureau of investigating (CBI) has sought attachment of a portfolio held by an Indian national in an Indian cryptocurrency exchange in connection with a bank impersonation investigation in Florida, people familiar with the development said on Sunday.The individual, identified as Punam Jaiswal, is deceased. However, officials said the proceeds of crime are being seized as ordered by the circuit court of 5th judicial circuit in Hernando County, Florida and the request of the DOJ under the mutual legal assistance treaty between the two countries, officials said.The US agencies were investigating a bank impersonation scam in Florida, involving theft of $122,000, which was transferred in the account of Jaiswal maintained at WazirX crypto exchange based in India. Based on a search warrant issued by the Florida circuit court on October 26, 2023, the DOJ approached the Indian government seeking assistance in the case.“The ministry of home affairs (MHA) forwarded the request to us in January this year. Based on the documents shared by the US, a preliminary enquiry into the matter was initiated in June. After proper verification, we have now sought attachment of cryptocurrency and Indian rupees lying in the exchange in the name of Punam Jaiswal,” said a CBI officer, who didn’t want to be named.This person said Jaiswal’s account in WazirX had 7.83 ethereum, 0.26 bitcoin and 8.7 lakh Indian rupees, which have already been temporarily frozen by the exchange on the request of the probe agency.“The assets in exchange are now being attached also so that the proceeds of crime are not used by anyone,” said a second officer.The agency didn’t share any other details about Jaiswal or the case, citing sensitive MLAT arrangements on information sharing between the two countries.The CBI as well as the Enforcement Directorate (ED) have lately decided to focus on cyber crimes, online financial frauds in which crypto wallets are being used by the scamsters and illegal betting.ED’s assessment so far in cryptocurrency related frauds has revealed that the scamsters prey on the crypto craze, offering investment opportunities in cryptocurrencies or related products, but in reality, they are frauds.For instance, the accused persons set up fake investment platforms (websites or apps) that look like legitimate crypto exchanges or mining ventures and then advertise astronomical returns. “Many victims, unfamiliar with how cryptocurrencies actually work, are lured by the promise of quick riches. To build credibility, the fraudsters may use names or photos of reputed crypto experts without their consent,” said an ED officer, who requested anonymity.ED is currently investigating 162 cases related to cyber crimes and crypto-currency frauds.