Tue Jun 24 19:48:06 UTC 2025: **Summary:**
The Madras High Court declined to defreeze the Chennai-based bank account of a software engineer working in Bengaluru who trades cryptocurrency. His account was frozen at the request of police departments from Telangana, Karnataka, Kerala, Gujarat, and New Delhi, due to multiple cybercrime complaints. The court stated it lacks jurisdiction over police departments outside of Madras and advised the petitioner to seek legal remedies. The individual claims to have legitimately purchased and sold cryptocurrency. The Central Government clarified that while the Indian Cybercrime Coordination Centre (I4C) facilitates cybercrime reporting, individual state police forces are responsible for investigations and account freezing.
**News Article:**
**Madras High Court Refuses to Defreeze Crypto Trader’s Account Amid Cybercrime Probe**
CHENNAI, June 25, 2025 – The Madras High Court has rejected a petition to defreeze the bank account of a Chennai-based cryptocurrency trader, B. Kalyan, whose account was frozen following requests from police departments across five states – Telangana, Karnataka, Kerala, Gujarat, and New Delhi. Kalyan, a software engineer currently working in Bengaluru, found himself embroiled in multiple cybercrime complaints, leading to the freezing of his HDFC Bank account.
Justice P. Velmurugan dismissed Kalyan’s petition, citing the court’s lack of jurisdiction over police departments outside of Madras. HDFC Bank’s counsel confirmed the account freeze was a direct result of requests from these multiple state law enforcement agencies.
Kalyan claims he legitimately traded cryptocurrency, using personal loans to purchase and sell digital assets. He expressed shock at the freezing of his salary account, asserting his innocence.
The Central Government Standing Counsel explained that while the Indian Cybercrime Coordination Centre (I4C) provides a national framework for cybercrime reporting and coordination via the National Cybercrime Reporting Portal (NCRP) and helpline 1930, the actual investigations and freezing of assets fall under the purview of individual state police forces, operating under the Bharatiya Nagarik Suraksha Sanhita.
The court advised Kalyan to pursue legal remedies within the appropriate jurisdictions. The case highlights the growing complexities of cryptocurrency regulation and the challenges faced by individuals caught in the crosshairs of multi-state cybercrime investigations.
First Piper 