IT raid at 5 locations in Kerala over cryptocurrency hawala transactions

Kozhikode: The income tax department had launched raids at five locations in Kerala, including an institution in Kozhikode, after finding large-scale cryptocurrency operation linked to hawala transactions.

The raids were carried out on Thursday at the Calicut Trading Institute in Eranjipalam in Kozhikode, and Thrissur, as well as the residences of individuals associated with it in Edakkara, Malappuram, and Kozhikode. The Income Tax Investigation Division in Kozhikode and Kochi is leading the investigation.

Authorities found that the operation involved more than 1,500 accounts. These accounts were used to channel massive sums of money into cryptocurrency, which was then sent to Dubai for hawala transactions. The raids revealed that Yasir, a native of Edakkara, and his associates had been using cryptocurrency to carry out transactions, amounting to nearly Rs 25 crore over three years.

Daily transactions of Rs 5 lakh

Yasir alone was found to be conducting daily cryptocurrency transactions worth Rs 5 lakh through 10 accounts. Investigations also revealed that Yasir had opened around 200 accounts in the names of his relatives and others to facilitate these operations.

The money deposited in Kerala was converted into cryptocurrency and sent to Dubai, raising questions about its ultimate use. Authorities are now investigating the purposes behind these transfers. The bank accounts of students studying at the Calicut Trading Institute were being used for these transactions.