Indian Crypto Ban Sees State Funds Seized in Bitcoin Scam Frozen in Bank Account

The authorities in India appear to have fallen victim to their own anti-crypto regulations. Money seized from a convicted Bitcoin scammer is currently sitting trapped in a frozen State Bank of India of bank account.

The authorities had originally hired a local trading venue to take care of exchanging the $1.1 million in Bitcoin for the Indian National Rupee. However, the account used by the exchange was frozen under earlier regulations and, as such, the money cannot be transferred.

Bitcoin Exchange Bank Account Frozen Under RBI Circular

According to a report in The Times of India, the more than $1.1 million (in local currency) was seized by the Indian cyber crime cell from the fraudulent investment platform GainBitcoin. The investigators had tasked local crypto trading venue Koinex with the job of exchanging the Bitcoin to Indian Rupees.

In other news. Koinex helped Pune cops sell 244 BTC seized from Gain Bitcoin scam, and now Pune police can’t take the funds to their treasury because…