Coinbase-backed crypto exchange cooperates with investigators after offices searched by authorities: Report
India's top crypto app is reportedly cooperating with authorities after law enforcement officers raided its premises this week.
Reuters reports that agents from the Department of Enforcement (ED), India's financial-crime agency tasked with investigating money laundering and foreign exchange crimes, raided the offices of the money platform. Electronic CoinSwitch on Thursday.
An unnamed source with direct knowledge of the incident stated that the search was linked to a suspected violation of the country's foreign exchange laws. Agents reportedly asked about the company's foreign investments, earnings and cash outflows to check for compliance.
CoinSwitch CEO and co-founder Ashish Singhal denied that the case was about money laundering. He declined to provide details about the allegations due to the sensitivity of the legal issues, but said that the company was in talks with the Enforcement Division's unit in Bengaluru. This unit asks about how the company operates and reaches customers.
“Most of their engagement with us is to know what CoinSwitch does… (Company) has engaged with us regarding the operation of our cryptocurrency platform and we are fully committed to the operation of our cryptocurrency platform. fully cooperate with them.”
CoinSwitch claims to be the largest crypto company in India with over 18 million registered users and over 500 employees.
The company's valuation has grown to $1.9 billion in 2021 following a successful funding round that saw investments from top investors, including the crypto exchange's investment arm. from Coinbase, Coinbase Ventures and venture capital firm Andreessen Horowitz (a16z) in Silicon Valley.
Aug 29, 2022