India Probes 400 Binance Traders for Alleged Crypto Tax Evasion: Report

Indian tax authorities have launched an investigation into over 400 high-net-worth merchants utilizing Binance, suspecting large-scale crypto tax evasion, based on a report from The Economic Times.

The probe, led by the Central Board of Direct Taxes (CBDT), targets exercise between 2022-23 and 2024-25 and instructs regional workplaces to submit findings by October 17.

India’s Crypto Tax Burden Reaches 42.7% for Top Earners, Probe Targets Evasion

The merchants underneath scrutiny allegedly prevented paying India’s steep crypto taxes, which embrace a 1% withholding tax on each transaction and a 30% tax on income.

When mixed with surcharges and a 4% cess, the efficient fee can attain 42.7% for high earners.

The authorities has maintained its robust stance on digital belongings, with Union Minister Piyush Goyal just lately reaffirming India’s dedication to increasing its central financial institution digital forex (CBDC) whereas persevering with to closely tax personal cryptocurrencies.

Binance was banned from working in India in late 2023, together with eight different offshore exchanges, after the Financial Intelligence Unit (FIU) accused them of violating the Prevention of Money Laundering Act.

The firm later paid a $2.25 million fine and re-entered the Indian market in August 2024 after registering as a “reporting entity,” a transfer that reportedly enabled authorities to entry knowledge for the continuing tax probe.

BREAKING: Indian Tax Dept targets 400+ rich people for hiding crypto income on offshore Binance wallets.

– CBDT orders probe studies by Oct 17
– Traders did not disclose digital belongings held overseas
– Binance’s FIU registration helped authorities hint hidden… pic.twitter.com/COWs4uApOv

— Crypto India (@CryptooIndia) October 12, 2025

Investigators are additionally wanting into peer-to-peer (P2P) transactions carried out by means of Binance that have been settled utilizing native financial institution accounts, Google Pay, or money, the report stated.

While money settlements have since been discontinued, authorities imagine these strategies could have been used to hide taxable earnings.

The investigation provides to the rising regulatory challenges dealing with Binance, which can be dealing with fallout from token depegs and system failures in different markets.

The alternate just lately pledged to compensate affected merchants, because the broader crypto business continues to grapple with report liquidations and elevated authorities scrutiny worldwide.

14 Sentenced to Life in India for Kidnapping Crypto Investor

In August, an Indian anti-corruption courtroom sentenced 14 males, together with 11 serving and former law enforcement officials and ex-legislator Nalin Kotadiya, to life imprisonment for the 2018 kidnapping and extortion of businessman Shailesh Bhatt over his cryptocurrency holdings.

The group was convicted of kidnapping, conspiracy, and corruption-related offenses by a particular courtroom in Ahmedabad.

The case dates again to February 2018, when Bhatt was kidnapped at gunpoint by males posing as CBI officers and brought to a farmhouse close to Gandhinagar.

He was pressured to switch 34 Bitcoin value round $150,000 on the time. The kidnappers additionally demanded a further 176 BTC and ₹32 crore ($3.6 million), although the second ransom try failed when the courier grew suspicious.

In the identical month, India’s Enforcement Directorate (ED) raided 11 locations across cities, together with Delhi, in reference to a worldwide crypto fraud scheme. The crackdown adopted FIRs filed by the CBI and Delhi Police.

According to officers, the accused posed as regulation enforcement or tech assist brokers to extort cash from each Indian and overseas nationals.

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