Coinbase-backed crypto exchange cooperates with investigators after offices sought by authorities: Report
India’s leading crypto app has reportedly cooperated with authorities after law enforcement officials searched its premises this week.
Reuters reports that agents from the Enforcement Directorate (ED), India’s financial crime agency tasked with investigating money laundering and foreign exchange offenses, raided the office of crypto platform CoinSwitch on Thursday.
An unnamed source with direct knowledge of the case claims that the search is linked to suspected violations of the country’s currency law. The agents are said to have asked about the company’s foreign investments, income and payments to check compliance.
CoinSwitch CEO and co-founder Ashish Singhal denies that the case is about money laundering. He declined to give details of the allegations due to the sensitivity of the legal issues, but says the company is in talks with the Enforcement Directorate’s Bengaluru unit. The unit asked about how the company operates and onboard customers.
“Most of their engagement with us has been about knowing what CoinSwitch does… [The agency] have been engaged with us regarding how our crypto platform works and we are fully cooperating with them.”
CoinSwitch claims to be the largest crypto company in India with over 18 million registered users and more than 500 employees.
The firm’s valuation rose to $1.9 billion in 2021 after a successful funding round that saw investment from leading investors, which include crypto exchange Coinbase’s investment arm, Coinbase Ventures, and Silicon Valley venture capital firm Andreessen Horowitz (a16z).
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