Hundreds of India’s wealthy crypto traders are now in the crosshairs of the taxman, following the turbulent history of the Binance exchange in the country. A new report reveals that over 400 high-net-worth individuals are under investigation for evading taxes on their Binance trades, conducted during a period when the platform itself was operating illegally in India.
The traders allegedly exploited the unregulated status of the global exchange between 2022 and 2025 to avoid India’s hefty crypto taxes, which can consume nearly half of all profits for top earners. The crackdown arrives just as Binance has negotiated its return to the Indian market by paying a $2.25 million penalty and registering with financial intelligence units.
This sequence of events paints a picture of a regulatory noose tightening, first on the exchange for flouting local laws, and now on the users who may have believed their transactions on the offshore platform were beyond the reach of domestic authorities.
