Case Study: Cryptocurrency Laundering Through a Real Enforcement Directorate Investigation

An in-depth case study of the Enforcement Directorate's 2022 money laundering probe into instant loan apps and the Indian crypto exchanges that, according to the ED, carried their proceeds offshore. Start with the predicate offence: predatory lending apps, borrower harassment and the police FIRs that let the ED register its case under PMLA. Map the alleged money route through NBFC partners, fintech fronts and payment gateways into rupee deposits on WazirX and Vauld, and from there as crypto to foreign wallets. Sit through the exchange searches, the freezes of bank balances, the public dispute between Binance and WazirX over who controlled the wallets, and the legal machinery of Section 17 freezing and adjudication. Rebuild the trail the way an investigator must, from rupee deposit to withdrawal address, and see where on-chain tracing runs into pooled offshore wallets. Then separate the parallel FEMA show-cause notice from the PMLA probe, follow the regulatory aftermath (VDA service providers made PMLA reporting entities in March 2023, FIU-IND action against offshore exchanges) and close with playbooks for forensic auditors and compliance officers. Every allegation is attributed to the agency that made it; no court has ruled on these matters, and nothing here is a finding of guilt. Built for senior forensic auditors, chief compliance officers and financial crime investigators.