Coinbase-Backed Crypto Exchange Cooperating With Investigators After Offices Searched by Authorities: Report

India’s leading crypto app is reportedly cooperating with authorities after law enforcement officers searched its premises this week.

Reuters reports that agents from the Enforcement Directorate (ED), India’s financial-crime agency tasked to investigate money laundering and foreign exchange offenses, raided the offices of crypto platform COINSWITCH on Thursday.

An unnamed source with direct knowledge of the case claims that the search is related to suspected violations of the country’s foreign exchange law. The agents reportedly asked about the company’s foreign investments, income and outflows to check for compliance.

CoinSwitch CEO and co-founder Ashish Singhal denies that the case is about money laundering though. He refused to provide details about the allegations due to the sensitivity of the legal issues, but says that the company is in talks with the Enforcement Directorate’s unit in Bengaluru. The unit inquired about how the company operates and onboards customers.

“Most of their engagement with us has been about knowing what CoinSwitch does… [The agency] has been engaged with us with respect to functioning of our crypto platform and we are fully cooperating with them.”

CoinSwitch claims to be the largest crypto company in India with over 18 million registered users and more than 500 employees. 

The firm’s valuation soared to $1.9 billion in 2021 after a successful funding round that saw investments from leading investors, which include crypto exchange Coinbase’s investment arm, COINBASE Ventures, and Silicon Valley venture capital firm Andreessen Horowitz (a16z).