ED initiated investigation on the basis of MLA request received from the US authorities invoking a unique provision of section 2(ra) of PMLA, 2002 implying offence of cross border implications
FinTech BizNews Service
Mumbai, May 4, 2024: Directorate of Enforcement (ED), Dehradun conducted a search on 01.05.2024 at the residence of Parvinder Singh s/o Surjeet Singh r/o Haldwani, Dist. Nainital, consequent to his arrest under the provisions of Prevention of Money Laundering Act (PMLA), 2002. 268.2263 Bitcoins, equivalent value of Rs. 130.48 Crore (approx.) as on date were seized during the course of the search operation, as per a press release issued by the ED on Saturday.
ED initiated investigation on the basis of MLA request received from the US authorities invoking a unique provision of section 2(ra) of PMLA, 2002 implying offence of cross border implications, with the schedule offences corresponding to the NDPS Act. The brothers namely Banmeet Singh and Parvinder Singh, along with others were operating an international drug trafficking group named as the Singh DTO (Drug Trafficking Organization). They used vendor marketing sites on the dark web, numerous free advertisements on clear web websites, and a network of narcotics and controlled substance distributors and distribution cells to sell drugs in USA, UK and other European Countries. The Singh Organization received the drug trafficking proceeds through sale on dark web markets, then laundered those proceeds through crypto currency transactions.
Both brothers used monikers “Liston” on a variety of dark web markets, including Silk Road 1, Alpha Bay and Hansa. As per the information, they received Bitcoins associated with the Liston Monikers which were nothing but the proceeds of crime through illegal sale of drugs in various countries. US Authorities have already seized bitcoins valued at thousands of crores of rupees. The search u/s 17 of PMLA, 2002 was conducted at one premise after Parvinder Singh, during his ED custody, agreed to surrender his proceeds earned through sale of illegal drugs online majorly in European Countries.
In this case, search was also conducted earlier on 26.04.2024 at four premises in which digital devices and other incriminating documents were seized. During this search, Parvinder Singh was arrested under PMLA, 2002 and the Hon’ble Special Court, Dehradun granted 7 days ED custody. Further investigation is under progress.
