THIRUVANANTHAPURAM: The Enforcement Directorate (ED) is investigating cryptocurrency transactions linked to banned terrorist groups. The ED’s investigation stems from suspicious indications that terrorist organizations, including the Popular Front of India (PFI), conducted financial transactions using cryptocurrency. The ED stated that once they gather more details, they will hand over the case to the National Investigation Agency (NIA).
On Thursday, the ED conducted raids at eight centers in Kerala connected to cryptocurrency transactions. They conducted raids at 4 places in Kozhikode, 3 in Ernakulam, and one in the Kasaragod district. The ED initiated this investigation as scams involving cryptocurrencies and virtual asset businesses fall under the Prevention of Money Laundering Act (PMLA). The investigation focuses on the transfer of funds for terrorist activities through digital currencies that are not regulated by the RBI, leading to potential money laundering.
The ED reports that NIA has already noted some instances of foreign accounts easily transferring funds for terrorist activities using cryptocurrency. In light of this, the ED is investigating transactions connected to Kerala. The banned terror group Popular Front of India (PFI), suspected to have funded activities through cryptocurrency, has come under strict monitoring since its ban.
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