Mumbai police arrested a director of a forensic audit firm accused of illicitly transferring nearly Rs 30 crore in cryptocurrency seized in the 2018 GainBitcoin probe to private exchanges and personal wallets. Authorities seized devices and records as they expand inquiries that may implicate other firm officials and potential police collusion.

The Mumbai Economic Offences Wing arrested a director of a forensic audit firm in connection with allegations that nearly Rs 30 crore of cryptocurrency seized during the 2018 GainBitcoin investigation was illicitly diverted to private exchanges and personal wallets. According to reporting by the Times of India, detectives say the transfers were unauthorized and suggest a scheme to siphon seized assets under the guise of audit or custody activities. Investigators executed searches and seized laptops, mobile devices and records as they seek transactional trails and communications that could identify accomplices, other firm officials and any external facilitators. The arrest broadens an ongoing probe that already examines how frozen digital assets were managed post‑seizure and raises questions about internal controls and oversight in forensic service providers handling evidence. Authorities said inquiries will assess potential collusion with law‑enforcement staff or intermediaries and pursue recovery of diverted assets if links are substantiated. The development underscores scrutiny on post‑seizure handling of crypto evidence and the need for stronger custody protocols.