On 31 July 2026, the Enforcement Directorate’s (ED) Dehradun office provisionally attached assets worth approximately ₹8.54 crore (about $895,730) belonging to Hemant Ishwar Sharma under the Prevention of Money Laundering Act (PMLA). The action was taken in connection with a Bitcoin ($BTC) scam via Iceland-registered BTCFUND.IS, raising the case total to ₹13.10 crore (about $1,374,174).
ED Attaches Additional ₹8.54 Crore Assets in the BTCFUND.IS Case
ED’s sub zonal office issued a provisional attachment order PMLA, 2002, attaching assets worth about $895,730 crore belonging to Sharma. When added to the earlier attached movable and immovable property worth around $478,338, including bank balances and land, the total provisional attachments reach about $1.4M.
Meanwhile, Sharma was arrested earlier in the investigation and is currently in Siddhowala Prison, Dehradun. The agency had launched the investigation on the basis of FIRs filed by the Police Station Rajpur, Dehradun, and Police Station Dineshpur, Udham Singh Nagar, under Section 420 of IPC, 1860, for cheating investors through the website BTCFUND.IS.
How BTCFUND.IS Allegedly Used an Iceland Registration to Gain Investor Trust
The ED alleges that Sharma operated the Bitcoin investment website BTCFUND.IS, which was registered in Iceland, using its foreign registration to create an impression of credibility and global backing. According to the agency, the investors were drawn in by promises of high returns on investing in Bitcoin and the claims that foreign nationals were connected to the company, making the platform appear more established and trustworthy.
In addition, the ED’s investigations revealed that the Icelandic .IS domain name and the purported overseas associations attracted numerous investors in India to deposit funds between 2014 and 2018. After collecting substantial funds, the website was shut down.
How India’s PMLA Enforcement Against Crypto-Related Financial Crimes Has Evolved
India’s PMLA approach to crypto-related crimes evolved from investigating virtual assets used in traditional offences to regulating the sector itself. Prior to 2023, ED used the existing provisions for proceeds of crime for fraud, cheating and cybercrime. On 7 March 2023, the activities of VDA were included under PMLA and exchanges and service providers became reporting entities.
Since 2023, FIU-IND has implemented AML/CFT requirements such as registration, due diligence, record-keeping, suspicious transaction reporting, and Travel Rule. Enforcement has been increased against non-compliant platforms, by leveraging blockchain tracing, asset attachment, and cross-border investigations.
As of early 2026, 54 VDA service providers have registered as reporting entities and 53 non-compliant operators are facing takedown directions. The agency has arrested, seized or frozen cryptocurrency-based proceeds of crime valued at about $439,514,319 across crypto-related cases, reflecting the country’s shift toward a structured AML framework aligned with FATF standards.