ED arrests crypto trader Robin Khandelwal in alleged Sriki-linked laundering case involving cross-border crypto accounts, UK entities and Bitcoin-funded domain transfer.
The Directorate of Enforcement (ED) arrested cryptocurrency trader Robin Khandelwal on Tuesday (June 3) in the ongoing investigation into the money laundering case of hacker Srikrishna Ramesh, popularly known as Sriki. The agency said Khandelwal was a significant intermediary in the handling and conversion of virtual digital assets obtained via cybercrime activities since 2016-17.
The investigation indicates that several cryptocurrency accounts were held and digital assets were transferred and disposed of from various accounts, including those held in foreign trading platforms. The transactions were thought to have been cross border fund transfers and were engineered to mask the source of the funds.
Cross-Border Transactions Under Scrutiny
The ED said that Khandelwal has made a large number of international remittances through digital payment and money transfer platforms. Investigators said they sought information from the wallets and transactions in compliance with the Prevention of Money Laundering Act (PMLA) but the information had not been provided in full.
The agency also uncovered a connection to two companies located in the UK: Sigma Trading Corporation Ltd and Supriore Solutions Ltd, who opened bank accounts using the agency’s financial platform. But the accounts were not made available during the investigation.
Domain Transfer and Bitcoin Payments Examined
Another part of the investigation is about the transfer of ownership of the domain dharmasthala.org. The ED said that discussions on WhatsApp, which were examined in the course of the probe, revealed communication between WhatsApp user Sriki and Khandelwal regarding the transfer.
In May, Khandelwal was questioned under the Prevention of Money Laundering Act and reportedly admitted the transaction had taken place via Namecheap and was funded by Bitcoin. Investigators requested information about the origin of the cryptocurrency that was used for the payment. The agency said it was unable to get a satisfactory answer about where the digital assets came from.
Also Read: FBI Seizes Record $8 Billion in Crypto in Global Scam Compound Crackdown
Alleged Role in Converting Stolen Digital Assets
Sriki allegedly received virtual currencies from an unknown source and used them to pay commissions for selling them on various cryptocurrency platforms, according to statements cited by investigators.
According to the ED, the transactions were not adequately recorded in business records and it is difficult to determine where the funds were derived from and where they went. Investigators found Khandelwal to be involved in the acquisition, possession, concealment and transfer of proceeds of crime.
The arrest is the latest development of one of the most closely watched cryptocurrency-related money laundering investigations in India. It marks the growing regulatory focus on cross-border crypto asset transactions and compliance within the crypto ecosystem.
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