India’s CBI Freezes Crypto Assets After U.S. DOJ Fraud Request

• CBI acts on U.S. DOJ plea to attach crypto assets linked to a $122K Florida bank fraud.
• Investigation traces digital funds to an Indian account frozen under the India–U.S. MLAT.
• Officials call it a test case for cross-border crypto enforcement and asset recovery.

India’s premier investigation agency, the Central Bureau of Investigation (CBI), has pursued the attachment of cryptocurrency assets held on WazirX following a formal appeal from the U.S. Department of Justice (DOJ). The assets in question relate to a $122,000 Florida bank impersonation scam traced back to an Indian national, now deceased.

DOJ’s Florida Fraud Case Catalyzes India Action

In October 2023, a circuit court in Hernando County, Florida issued a search warrant against the bank impersonation scheme. U.S. investigators later discovered that some of the illicit proceeds ended up in a WazirX account belonging to Punam Jaiswal.

Under the Mutual Legal Assistance Treaty (MLAT) between India and the U.S., a formal request was sent to Indian authorities to assist in freezing and recovering the assets.

Related: From Delhi to the US: Inside the Fake Coinbase Scam That Stole $20 Million

According to sources, India’s Ministry of Home Affairs (MHA) forwarded the DOJ’s request to the CBI in January 2025. The CBI opened a preliminary inquiry in June, verifying the documentation before initiating formal attachment of crypto and rupee holdings in WazirX.

Details of the Freeze: Bitcoin, Ethereum & indian Rupees

Investigators claim Jaiswal’s WazirX wallet held:

• 0.26 Bitcoin
• 7.83 Ethereum
• ₹870,000 in Indian rupees

These holdings were initially frozen by the exchange at the agency’s request. The CBI is now seeking to permanently attach the assets, ensuring they cannot be transferred or liquidated while the criminal-finance case proceeds.

Officials say this step is crucial to prevent misuse of proceeds of crime, in line with the U.S. court’s order and India’s legal mandates.

WazirX in Focus: Will This Mark a New Precedent?

For WazirX, this case spotlights the legal exposure crypto platforms face amid international financial-crime cooperation. The exchange was previously headlined over law-enforcement requests as in the past, WazirX responded to hundreds of such requests from agencies like India’s ED, NIA, and international bodies.

The timing is also sensitive. WazirX in July 2024 suffered a major hack (reportedly ~$234.9 million) that strained its operations and trust reputation.

Related: WazirX Hack: Indian Authorities Arrest Suspect in $230 Million Theft

In recent months, both the CBI and the Enforcement Directorate (ED) have intensified their focus on cybercrimes and financial fraud involving cryptocurrencies. The ED currently investigates over 160 cases related to crypto-linked scams, many of which involve false investment platforms that imitate legitimate exchanges.