Bloomberg reports raids on CoinSwitch offices as India’s ED probes forex violations

The Enforcement Directorate (ED) of India conducted searches at five premises of the a16z-backed cryptocurrency exchange CoinSwitch Kuber as part of an investigation into forex-rule violations, according to Bloomberg.

The agency conducted searches at the offices and homes of the company’s CEO and directors.

According to a source, the ED suspects the exchange of purchasing shares worth more than 20 billion rupees ($250 million) in violation of forex laws.

The agency also found the platform non-compliant with certain KYC rules.

“We receive requests from various government agencies. Our approach to this has always been transparent. The crypto industry is a sector with great potential at an early stage of development, and we are in constant dialogue with all stakeholders,” CoinSwitch said.

The Bengaluru-based platform was invested in by Paradigm, Sequoia and Tiger Global. In October 2021, after a $260 million funding round led by Coinbase Ventures and a16z, CoinSwitch reached unicorn status.

In early August it emerged that the ED accused another major Indian crypto exchange—WazirX—of forex violations and money laundering amounting to $350 million, as reported in ForkLog.

Earlier in March, CoinSwitch, along with other Indian digital-asset exchanges, faced tax-evasion allegations.

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