Indian Police Can’t Sell Seized Crypto Due to RBI’s Banking Ban

In an ironical situation, the Pune police have moved a session’s court to gain access to the Rs 8.42 crore they converted after seizing over 244 cryptocurrency units. These digital assets were seized from the perpetrators of the infamous GainBitcoin scam. However, the money is now stuck as there is no way to gain access to the money thanks to the RBI circular that stops banks from dealing with any crypto-related business.

According to a Times of India report, the Pune police hired the services of Discidium Internet Labs Private Limited, the parent company behind Koinex which shut down recently on account of increasing operational difficulty due to the RBI banking ban. The money is now stuck in the Discidium account at the Central Bank of India’s Worli (Mumbai) branch.

Discidium Internet has also filed an interlocutory application before the Supreme Court to direct the RBI to instruct the Central Bank of India to unfreeze the account. Interestingly though, the RBI has said that it had not frozen Discidium Internet’s account nor had directed the Central Bank of India to do so.

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