No More Blanket Account Freezes in India's Crypto Fraud Cases

  • An Indian High Court rules that investigation agencies cannot freeze an entire bank account during a probe.

  • The court directed the police to freeze only the specific amount related to the crypto fraud.

  • The petitioner granted access to his bank account on the condition he maintains a minimum balance of an approximate $2,990.

An Indian High Court has reined in on nonchalant account freezes declaring that investigative agencies cannot freeze entire bank accounts during crypto fraud investigations.

The court’s decision comes on the heels of a recent crypto-fraud case where a petitioner’s account was entirely frozen. Considering the inconveniences and hardships caused by such moves, the court mandated that investigative agencies can only freeze the specific amount linked to the fraud; not the entire account.

Mohammed Saifullah, an HDFC Bank account holder in Tiruvallur district, filed a petition after his account was frozen by the Telangana State Cyber Security Bureau (TSCSB). The freeze, related to a cryptocurrency fraud investigation, lasted over a year. While Saifullah was unaware of the reason, the bank’s counsel informed the court it stemmed from an invest…

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