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2. Learned counsel for the petitioner has submitted that the petitioner handed over the credentials of bank accounts of both the companies to Pei Pengyun who utilised the services of the petitioner to convert USDT to INR. The petitioner opened Binance account for receiving USDT from Pei Pengyun. The petitioner worked on commission basis and was offered commission on profit of the business as he sold the USDT and credited the sale proceeds to the bank accounts of the two companies. He did not receive any share in the profit of the operation. In the meantime, one Shekhar Pal lodged a complaint on 16th May, 2023 wherein he stated that he joined an online gaming app "Fiewin" and started playing the money related games therein. He started by paying small amounts of money initially and later invested huge amounts. Out of a total amount of Rs. 21,69,079/- paid by him, he got back Rs. 13,94,485/-, the transactions being done through three UPI Ids. The complaint was lodged against unknown persons and charge sheet has not been submitted as yet.

3. The Enforcement Directorate (for short the E.D.) registered the present ECIR on 21 February, 2024 against unknown responsible persons of Fiewin app. The petitioner was called on several occasions and his statement was recorded under Section 50 of the Prevention of Money Laundering Act, 2002 (hereinafter referred to as the PMLA). Prosecution complaint was filed against the petitioner and the others on 7th October, 2024.

4. Learned counsel submits that the petitioner's role was limited to selling crypto currencies in Binance app to the registered and verified users and deposit the sale proceeds in the bank accounts of the companies. He used to receive commission on daily basis which amounted to Rs. 2,00,000/- per month. Trading in crypto currency in Binance trading platform is not illegal in India and is allowed subject to payment of tax. Fiewin app is still in operation and has not been banned. The petitioner was not aware of the transactions made in the bank accounts of the two companies or about payment received from the app or any person in the app. He had no mens rea to cheat anyone or contravene any statutory provision. The ECIR has its source in the complaint of the predicate offence which was lodged with a malafide intention. Despite being aware of the nature of the game, the complainant chose to indulge in the same voluntarily and was not cheated. Also, allegations under Sections 420 and 406 of the Indian Penal Code cannot go hand in hand.

8. The petitioner was the authorized signatory of the companies. During investigation it was found that there were seven Binance accounts in the names of Chinese nationals that have been created with 51.6 million USDT worth around Rs. 400 crores. These accounts were being operated from China as found from the log I.P. addresses. Huge proceeds of crime were generated, accumulated and laundered through crypto currency by these Chinese nationals, one of whom being Pei Pengyun. Indian currency amounting to Rs. 39,00,000/- has been seized and provisional attachment of properties to the tune of Rs. 25.78 crores has been identified as proceeds of crime. The petitioner along with the other accused defrauded common people through their online gaming app and laundered the POC generated therefrom. The amount collected from the users through the recharge persons were transferred to the Binance accounts of the petitioner or his companies and transmitted to different offshore Chinese citizens after conversion of crypto currencies and also after keeping aside his commission on the profit derived therefrom.

17. Herein, the petitioner being the owner/director of the two companies introduced Pei Pengyun, a Chinese national as another director of the company. Seven Binance accounts are found to have been opened in the names of Chinese nationals with 51.6 million USDT worth around Rs. 400 crores which were being operated from China. The petitioner was engaged in bit coins/crypto currency trading. He used to receive crypto currency in his Binance accounts and sell them to various users. The money earned therefrom was deposited in the bank accounts maintained in the names of his companies, he being the authorized signatory of all the bank accounts. Investigation reveals that the bank accounts were operated by Pei Pengyun who had access to the said accounts. The two companies are not in operation at present. The primary allegation against the petitioner is trading in crypto currency which is not illegal in India. The Hon'ble Supreme Court, in the authority in Internet and Mobile Association of India v/s Reserve Bank of India reported in 2020 SCC OnLine SC 275, struck down a Reserve Bank of India circular that had effectively imposed a ban on virtual currency trading in India. Though the Indian Government does not recognize crypto currency as legal currency, trading in the same is legal and 30% tax is imposed on profits from crypto transactions from April 2022.