India’s Financial Crime Regulator Assigns CoinDCX to Handle Seized Crypto Assets

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

March 5, 2025 02:32 EST

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India’s Enforcement Directorate (ED) has selected CoinDCX to oversee the management of seized digital assets, according to an announcement shared with Cryptonews. The move follows increased efforts to combat cryptocurrency-related financial crimes. Recent high-profile cases include the GainBitcoin and BitConnect scams.

As part of the collaboration, CoinDCX will provide a secure custody infrastructure to store and manage confiscated assets, the exchange said. Further, the exchange will implement security protocols to ensure asset protection.

“To ensure the highest level of protection for seized assets, we have deployed a specialized team armed with advanced security protocols,” said CoinDCX co-founder Sumit Gupta.

CBI and ED Seize Nearly $200M in Major Cryptocurrency Fraud Cases

Authorities have ramped up enforcement following large-scale cryptocurrency fraud cases. In the GainBitcoin case, the Central Bureau of Investigation (CBI) carried out searches across multiple cities. The investigation focused on an alleged multi-crore scam tied to a Bitcoin-based multi-level marketing scheme.

During these raids, the agency seized cryptocurrencies worth ₹23.94 crore (about $2.88m), along with documents and electronic devices that are currently being analyzed for evidence of financial misappropriation and cross-border transactions.

Similarly, in the BitConnect scam, the ED seized digital assets worth ₹1,646 crore (about $198m) last month. The scam defrauded investors worldwide. As a result, authorities raided multiple locations across Gujarat. They confiscated ₹13.50 lakh (around $16,250) in cash, an SUV and several digital devices.

Tighter Crypto Regulations Aim to Protect Investors from Fraudulent Schemes

“CoinDCX has been cooperative and assisted in the seizure process, providing valuable support in the investigation led by the Enforcement Directorate (ED). The company has worked closely with the directorate, ensuring compliance with all legal requirements and facilitating the opening of the custodian account on urgent basis,” said Parneet Kumar, Assistant Director at the ED.

By leveraging secure custody solutions, authorities aim to maintain transparency and integrity in the handling of confiscated funds while continuing their crackdown on fraudulent schemes.

With cryptocurrency adoption growing in India, regulatory bodies are doubling down on enforcement measures to protect investors and curb illegal financial activities.