Strategic Partnership for Digital Asset Security
India’s Central Bureau of Investigation (CBI) has partnered with Liminal, a Singapore-based digital asset custodian, to manage and secure digital assets seized in criminal investigations. This collaboration comes as a response to the increasing number of cryptocurrency-related frauds in India, highlighting the growing concerns in this sector.
Rising Concerns Over Cryptocurrency Frauds
India has recently experienced a series of cryptocurrency scams, resulting in significant financial losses and multiple arrests. Two prominent cases include a $300 million scam with 18 arrests and a $120 million fraud leading to at least two arrests. These incidents emphasize the challenges in regulating the digital asset ecosystem and preventing its misuse for illicit activities.
Liminal’s Role in Enhancing Digital Asset Security
Liminal, led by Mahin Gupta, co-founder of ZebPay, a key player in India’s cryptocurrency exchange market, has risen to the challenge. The company, known for its robust security measures, secured $4.7 million in mid-2022 from notable investors like Elevation Capital, Andreas Antonopoulos, Balaji Srinivasan, and Sandeep Nailwal. Liminal’s expertise in creating multi-signature and multi-party computation wallets positions it as a capable partner for the CBI in ensuring the security of seized digital assets.
Senior Vice President of Strategy and Business Operations at Liminal, Manan Vora, expressed pride in their collaboration with the CBI, stating that they consider it as a testament to their dedication to building a safe and regulated digital asset ecosystem in India.
CBI’s Discretion in Ongoing Investigations
The CBI has not disclosed specific details of the operations involving confiscated digital assets due to its discretion in ongoing investigations. However, they have publicly acknowledged their gratitude towards Liminal for their assistance and involvement in securing these assets.
The CBI’s decision to partner with Liminal for the custody of seized digital assets is a critical step in addressing the security challenges in the cryptocurrency sector. This collaboration not only reinforces the need for enhanced security measures but also showcases the potential of public-private partnerships in regulating and safeguarding the digital asset ecosystem in India.
Hot Take: Strengthening Digital Asset Security
The strategic alliance between CBI and Liminal underscores the increasing need for robust security measures within India’s cryptocurrency sector. This partnership not only aims to secure seized digital assets but also sets an example for future collaborations between law enforcement agencies and private entities to regulate and safeguard digital assets effectively.
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