Indian High Court Declares Police Freezing of Entire Accounts in Crypto Fraud Cases Illegal
CryptoNewsTerminal Staff15 Sep, 2024
Indian High Court Declares Police Freezing of Entire Accounts in Crypto Fraud Cases Illegal
In a significant ruling, the Madras High Court in India has declared that the police cannot freeze the entire bank accounts of an individual during the investigation of a financial fraud case involving cryptocurrency. This ruling has far-reaching implications for the rights of accused individuals and the due process of law in India. According to the High Court, only the amount allegedly involved in the fraud can be frozen by the authorities. Freezing innocent accounts can negatively affect the livelihood of the accused and infringe upon their fundamental rights. The bench emphasized that the authorities must provide clear reasons and due communication when freezing any bank account of an accused person. This ruling aligns with the principles of proportionality and reasonableness in law enforcement. It ensures that the measures taken during an investigation are not excessive or arbitrary and that the rights of the accused are protected.
