Yeah it seems that the exchanges mentioned in the topic were only being used as mule or dummy accounts to store the stolen funds in and those are the ones that have been seized, the exchanges have nothing bad to do with it.
Indeed this is just the tip of an iceberg of the rampant crypto related scams that were happening in the country at that time. Good to see that at least some of the scammers are facing the music.
Whether this will change the bank freezes or not, not sure. The government still was way more work to do in this sector.
I always has the doubt in the system which doesn't work right all the time and if you know these arrested persons can be just proxies while the actual one maybe enjoying in somewhere else or just in India itself. I hope my doubt is wrong.
Government regulating and implementing strict laws is good but those who scam really uses the centralized exchanges, I don't think so.
Anyway this might be a good thing or really a bad thing cause when something bad happens government will just blame the entire market and will try to bring them to extinct.