Cryptocurrency Handler Remanded to ED Custody in Major Money Laundering Case

A New Delhi court has granted the Enforcement Directorate a five-day custody of Lakshay Vij, a cryptocurrency handler, involved in a $400,000 money laundering case linked to defrauding a US citizen. The court cited substantial evidence against Vij, who allegedly laundered money through bogus accounts.

A New Delhi Special Court under the Prevention of Money Laundering Act (PMLA) has granted the Enforcement Directorate (ED) custody for five days to cryptocurrency handler Lakshay Vij. Vij was arrested on July 22 in connection to a money laundering case involving $400,000, the ED announced on Wednesday.

On Tuesday, the Rouse Avenue Court remanded Vij to ED custody in the money laundering case related to cheating a US citizen woman and transferring the money through various bogus bank accounts. Special Judge Gaurav Rao extended the custody till July 28.

Citing substantial evidence, including witness statements and digital messages implicating Vij, Judge Rao granted the ED's remand request. The ED had initially sought seven days' custody. Advocate Nitesh Rana opposed the remand, arguing the arrest was illegal. Special Public Prosecutor Simon Benjamin emphasized the custody was necessary to uncover the money trail and other accomplices involved.

The case originated from a complaint by US citizen Lisa Roth, who was defrauded into transferring $400,000 to a cryptocurrency account. The money was then laundered through multiple crypto wallets. The CBI has registered an FIR against Prafful Gupta and others for conspiracy and cheating charges in connection with the incident.

(With inputs from agencies.)