India: City Police Petitions Central Bank to Release $1.2M Seized Crypto Fund

Wilfred Michael 

Wilfred Michael

News reporter

04 October 2019,
11:02
India: City Police Petitions Central Bank to Release $1.2M Seized Crypto Fund

Police authorities in Pune, a city the western Indian state of Maharashtra, is reportedly at loggerhead with the country’s central bank, Reserve Bank of India (RBI).

According to the local news agency, Times of India, the bone of contention is the central bank’s refusal to approve the withdrawal of an Rs8.42 crore ($1.2 million) to the State Bank of India Treasury branch in Pune.

Pune police authorities had seized 244 BTC (appr $2 million at press time) from a certain Akash Kantilal Sancheti, who was believed to be the mastermind of a Ponzi scheme, Gain Bitcoin.

While investors are estimated to have lost at least $300 million to the scheme, the police were only able to recover the said amount and tried to convert it to fiat currency using the now-closed crypto exchange, Koinex.

Koinex, which has its company name as Discidium Internet Labs Private Limited, however, cannot remit the converted fiat currency to the Pune City police since their bank account is frozen by the RBI.

The RBI, as has been previously reported, banned all individuals as well as institutions in the state to stop dealing with cryptocurrency-related businesses in any way.

Thus, Koinex’s inability to pay the Pune Police force because of the ban has led the enforcement agency to try to influence the release of the funds through legal action. However, a court session has not been held to date, according to the report.

 

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