The Enforcement Directorate (ED), India’s law enforcement and economic intelligence agency, has chosen a digital asset exchange to manage custodial services for confiscated cryptocurrency for the first time in the country’s digital asset industry.
CoinDCX has been tasked by the ED with handling asset forfeitures and offering a safe custody system to hold and monitor these assets. According to CoinDCX’s emailed statement, this collaboration should guarantee a safe and legal way to handle confiscated property.
The first digital currency unicorn in India, CoinDCX, listed the BSV token for trading on its platform in July 2024, expanding the options for customers to purchase, sell, and exchange BSV. This listing highlights BSV’s potential in the Indian market and represents a major growth for the company, which has about 15 million registered users.
CoinDCX co-founder Sumit Gupta stated, “We are extremely proud to share that CoinDCX is assisting the Enforcement Directorate (ED) with the custody management of seized assets.”
Gupta clarified, “CoinDCX will provide the ED with assistance in storing confiscated assets in multi-signature and multi-party computation (MPC) wallets by deploying a dedicated team trained in advanced security protocols.” “While MPC wallets divide a private key among multiple shards across devices, multi-signature wallets require multiple keys for withdrawals.”
“With more than seven years of experience operating in India, we will offer top-notch security, compliance, and digital asset management solutions! This is our modest way of helping to develop the country and make the digital asset ecosystem safer,” Gupta continued.
In certain Indian locations, the ED has started taking aggressive action to combat digital asset fraud. The agency has greatly increased its efforts to look into and target fraudulent activities as a result of the rise in financial crimes in the digital asset area. These initiatives are a part of a larger plan to protect digital asset markets and to promptly detect and thwart illicit schemes that take advantage of investors. The ED hopes to uphold financial integrity and safeguard the public interest in India’s quickly developing digital economy by taking these steps.
Cryptocurrency seizures
Last month, as part of an inquiry into the colossal $2.4 billion BitConnect scam, the ED froze assets worth ₹1,646 crore, one of the biggest seizures of digital assets in India. In 2022, Satish Kumbhani, the main suspect, was charged in the US. According to court documents, BitConnect’s creator, Satish Kumbhani, 36, of Hemal, India, defrauded investors by using the company’s “Lending Program.”
