The CBI has frozen crypto assets at the request of the Department of Justice in a $122,000 bank fraud case in Florida, underscoring growing cooperation between India and the US in tackling cryptocurrency fraud.
A WazirX-related cryptocurrency fund has been seized by India’s CBI following a US Department of Justice investigation, signaling increased oversight and accountability in cross-border digital asset litigation.
India’s Central Bureau of Investigation (CBI) has acted on orders from the US Department of Justice (DOJ) to freeze digital assets related to a major bank impersonation scam in Florida. This move confirms increased international cooperation in tackling crypto fraud and financial crime.
US leads investigation into $122,000 bank fraud
The case focuses on a Florida-based bank impersonation scam in which approximately $122,000 (approximately Rs. 1 billion rupees) was stolen. Authorities located the stolen funds in a cryptocurrency account on WazirX, one of India’s leading cryptocurrency exchanges, which was owned in the name of Poonam Jaiswal, a deceased Indian citizen.
The Fifth Judicial Circuit Court in Hernando County, Florida, issued a restraining order, requiring the Department of Justice to seek assistance from Indian authorities under the Mutual Legal Assistance Treaty (MLAT) between India and the United States.
India acts on request from Ministry of Justice
Following an appeal by the Ministry of Justice, India’s Ministry of Home Affairs (MHA) transferred the case to the CBI in January 2025. A preliminary investigation conducted by the CBI in June confirmed that the cryptocurrencies held by Jaiswal may contain the proceeds of financial crimes. Based on these findings, the CBI has requested attachment (freezing) of both cryptocurrencies and Indian Rupees linked to Jaiswar’s WazirX account.
“After due verification of the documents provided by the US authorities, we moved swiftly to secure these assets to prevent further movement or liquidation,” a senior CBI official said on condition of anonymity.
Implications for virtual currency surveillance in India
The case reflects a broader trend of cross-border cooperation in cryptographic investigations, particularly between India and the United States. This shows that regulators are increasingly treating digital assets under the same legal framework as traditional financial assets.
For India’s cryptocurrency sector, this move sends a clear signal that regulatory compliance is important and that digital assets are not beyond the reach of international law enforcement agencies. These enforcement measures will increase transparency and accountability as the country introduces new rules regarding crypto exchanges and digital wallets.
“As digital assets become a common channel for the movement of funds globally, international cooperation will be key to ensuring that cryptocurrencies are used for innovation rather than exploitation,” said a crypto compliance expert familiar with the case.
This action highlights the increased focus of global financial authorities on crypto fraud, cross-border crypto investigations, and digital asset regulation to ensure safety and accountability in the digital financial ecosystem.
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