Crypto Quill

In a significant development, the Enforcement Directorate (ED) has apprehended Manideep Mago, a Delhi-based individual, on charges of money laundering. His company allegedly sold cryptocurrencies worth more than ₹1,800 crore. Let’s delve into the details.

The Investigation Unfolds

1. Initial Case: The ED initially booked a case against Mago’s company under the Foreign Exchange Management Act (FEMA). The agency acted based on source information that the company had sold crypto currencies exceeding ₹1,858 crore on crypto exchanges.
2. Foreign Outward Remittances: A preliminary investigation revealed that the company and its related entities made foreign outward remittances worth more than ₹3,500 crore.
3. Cash Deposits: Additionally, cash deposits exceeding ₹1,300 crore were made in the bank accounts of related entities.
4. Hawala Syndicate: The FEMA search uncovered an international ‘hawala’ syndicate operating in Delhi. This syndicate collected cash from exporters/importers and remitted it to foreign countries using bogus invoices.
5. Crypto Mining and Trading: The syndicate invested heavily in illegal crypto mining and arbitrage trading as part of their operation. They incorporated companies in Hong Kong and Canada to facilitate international hawala transactions.

Implications and Further Action

• Chartered Accountants and Bank Officials: The ED found evidence of involvement by chartered accountants and a few bank officials.
• Bogus Invoices: The syndicate generated bogus and forged invoices in 70,000 random names, justifying the deposit of cash.
• Accused Silence: The source of the crypto remains undisclosed by the accused.
• Collaboration with Delhi Police: The ED shared its findings with the Delhi Police crime branch, leading to an FIR against the company and others. Subsequently, the agency registered a money laundering case.