India’s CBI Freezes $122K Tied to Florida Bank Scam Amid Crypto Regulation Push
The Central Bureau of Investigation (CBI) in India has strong steps to seize cryptocurrency assets linked to a Florida bank impersonation scam that defrauded victims of $122,000. The assets were related to the account of Punam Jaiswal, an Indian citizen who died. He had 0.26 BTC, 7.83 ETH, and ₹8.7 lakh in Indian rupees on the WazirX market.
The freeze follows the U.S. request under the nation’s Mutual Legal Assistance Treaty (MLAT). This indicates that Indian and American law enforcement are collaborating more closely to combat cybercrime. later than a Florida judge issued an order for seizure, the U.S. DOJ found the fraudulent money in Jaiswal’s WazirX account.
The government acted quick, and in January 2025, the Ministry of Home Affairs filed a petition with the CBI. In June 2025, officials opened an investigation and are now proceeding to attach the confiscated cryptocurrency and related rupees formally. This will ensure that the money can’t be withdrawn or used in any other way while the investigation is ongoing.
Securing Proceeds of Crime Despite the Account Holder’s Death
Officials stressed that freezing the assets is crucial to prevent anyone else from accessing the money, even though the account holder, Jaiswal, is deceased. This ensures that crypto assets linked to illegal activity remain out of reach, thereby assisting to keep the money generated from crime secure and secure.
The CBI has made it plain that the legal procedure will continue until the proper outcome is reached. This makes it even harder to commit cross-border .
Rise in Crypto-Related Fraud Gets Regulators’ Attention
The case highlights the significant surge in crypto-related fraud and scams in India. The CBI and the Enforcement Directorate (ED) are two Indian law enforcement agencies that are paying closer attention to cybercrime and online fraud involving digital assets. The ED, for example, is looking into 162 active cases of cryptocurrency scams.
Many of these scams target individuals who are unaware that they’re being scammed by fake investment platforms that promise unrealistic profits. In September 2025, businessman Raj Kundra was charged with serious crimes. He is said to have received 285 from the well-known crypto scammer Amit Bhardwaj.
The ED stated that Kundra hid evidence and attempted to conceal the origin of the illegally obtained money, highlighting how such crimes are becoming increasingly complex.
The recent discovery by the Income Tax Department of a scam in southern India, in which the names of ordinary people were stolen for transactions worth ₹170 crore ($19.3 million), highlights the significant threat posed. Most of the victims in these schemes come from vulnerable backgrounds, such as those in farming and the gig economy. This illustrates the need for a change in the rules.
India’s Regulatory Push Gains Urgency
India’s swift response and robust stance on law enforcement are part of a broader push for crypto regulation in the country. As authorities continue to uncover new schemes and freeze illegal funds, the need for more thorough control of has increased.
These steps demonstrate that the government’s policy is becoming more mature, aiming to secureguard consumers while ensuring that India’s crypto ecosystem operates within a robust legal framework.
