The Enforcement Directorate (ED) has arrested Jaspreet Singh Bagga in connection with a money laundering case involving illegal foreign remittances amounting to ₹4,817 crore. The case revolves around the alleged transfer of funds using forged invoices to facilitate compensatory payments for under-invoiced imports from China and Hong Kong.
The ED’s investigation revealed that the illegal transactions were conducted under the guise of legitimate business dealings. The funds were reportedly funneled through a complex web of transactions, ultimately benefitting entities outside India.
The case took a significant turn when investigators focused on the financial activities of Birfa IT, a company at the center of the alleged illegal operation. According to the ED, Birfa IT had sold a large volume of crypto assets, encashing a staggering ₹1,858 crore through an Indian cryptocurrency exchange.
However, the investigation uncovered that these crypto assets had not been purchased within India, raising suspicions of cross-border financial manipulation.
The ED’s probe into the case has highlighted the growing misuse of cryptocurrencies in facilitating money laundering and illegal remittance transactions. Authorities are now scrutinizing the role of intermediaries and other entities that may have been complicit in the scheme.
This arrest marks a significant step in the ED’s ongoing efforts to crack down on financial fraud involving cryptocurrencies and cross-border transactions. Further investigations are underway to identify other individuals and organizations potentially involved in the illegal activities.
Jaspreet Singh Bagga’s arrest underscores the increasing vigilance of Indian authorities in tackling financial crimes that exploit emerging technologies and international trade frameworks. The ED is expected to continue its scrutiny of cryptocurrency transactions to ensure compliance with legal and regulatory standards.
