Title: The Central Bureau of Investigation Partners with Liminal for Digital Asset Security
India’s Central Bureau of Investigation (CBI) has formed a strategic alliance with Liminal, a Singapore-based digital asset custodian, to handle and protect digital assets seized in criminal investigations. This collaboration is a response to the increasing number of cryptocurrency-related fraudulent activities in India, shedding light on the growing concerns in this industry.
Rising Crypto Fraud Concerns in India
In recent times, India has experienced a wave of cryptocurrency scams, resulting in substantial financial losses and several arrests. Notable cases include a $300 million scam with 18 arrests and a $120 million fraud leading to at least two arrests. These incidents highlight the escalating difficulties in regulating the digital asset ecosystem and preventing its misuse for illegal purposes.
Liminal’s Role in Strengthening Digital Asset Security
Led by Mahin Gupta, the co-founder of ZebPay, an early participant in India’s cryptocurrency exchange market, Liminal has taken on the challenge. The company, recognized for its strong security measures, secured $4.7 million in mid-2022 from significant 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 confiscated digital assets.
Manan Vora, Senior Vice President of Strategy and Business Operations at Liminal, expressed pride in their collaboration with the CBI, stating, “We consider our partnership with the CBI as a testament to our unwavering dedication to building a safe and regulated digital asset ecosystem in India. As experts in the field, we feel it’s our responsibility to assist law enforcement agencies with rigorous security protocols.”
CBI’s Discretion in Ongoing Investigations
The CBI, known for its discretion in ongoing investigations, has not disclosed specific details of the operations involving confiscated digital assets. However, they have publicly acknowledged their gratitude towards Liminal for their assistance and involvement in securing these assets.
The decision by the CBI to team up with Liminal for the custody of seized digital assets signifies a crucial step in addressing the security challenges in the cryptocurrency sector. This collaboration not only emphasizes the necessity for enhanced security measures but also demonstrates the potential of public-private partnerships in regulating and safeguarding India’s digital asset ecosystem.
### News source: blockchain.news