India Central Bureau of Investigation (CBI) has acted at the behest of the U.S. Department of Justice (DOJ) to freeze digital assets tied to a major bank impersonation scam in Florida. This move underscores the growing international cooperation in tackling cryptocurrency fraud and financial crimes.
U.S. Leads the Investigation in $122,000 Bank Scam
The case centers on a Florida-based bank impersonation fraud that resulted in the theft of approximately $122,000 (around ₹1 crore). Authorities traced the stolen funds to a cryptocurrency account on WazirX, one of India’s leading crypto exchanges, held in the name of Punam Jaiswal, an Indian national who has since passed away.
The Circuit Court of the 5th Judicial Circuit in Hernando County, Florida, issued a seizure order, prompting the DOJ to seek assistance from Indian authorities under the Mutual Legal Assistance Treaty (MLAT) between India and the United States.
India Acts Following DOJ’s Request
Following the DOJ’s appeal, India’s Ministry of Home Affairs (MHA) forwarded the case to the CBI in January 2025. A preliminary inquiry conducted by the CBI in June confirmed that Jaiswal’s cryptocurrency holdings may include proceeds from financial crime. Acting on these findings, the CBI has requested the attachment (freezing) of both cryptocurrency and Indian rupees linked to Jaiswal’s WazirX account.
A senior CBI official, speaking anonymously, stated: “After proper verification of the documents provided by U.S. authorities, we have moved swiftly to secure these assets to prevent any further movement or liquidation.”
Implications for Crypto Oversight in India
This case reflects a broader trend of cross-border collaboration in crypto-related investigations, particularly between India and the United States. It demonstrates that regulatory authorities are increasingly treating digital assets under the same legal frameworks as traditional financial holdings.
For India’s crypto sector, the move sends a clear signal: regulatory compliance is critical, and digital assets are not beyond the reach of international law enforcement. As the country implements new rules for cryptocurrency exchanges and digital wallets, such enforcement actions reinforce transparency and accountability.
“As digital assets become a common channel for global money movement, international cooperation will be key to ensuring that crypto is used for innovation rather than exploitation,” said a crypto compliance expert familiar with the case.
This action highlights that global financial authorities are intensifying their focus on cryptocurrency fraud, cross-border crypto investigations, and digital asset regulation, ensuring that the digital finance ecosystem remains secure and accountable.
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