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Breaking: Crypto Exchange WazirX Bank Assets Frozen Over Money laundering Charges

coingape.com 05 August 2022 12:47, UTC
Reading time: ~2 m

The Indian Cryptocurrency Exchange, WazirX has landed under the radar of the Enforcement Directorate (ED). In the latest developments, the ED searched the premises of WazirX’s Director.

ED Froze WazirX $8.13 million bank assets

According to reports, After conducting the searches, the ED has frozen their bank assets worth over Rs 64.67 crores (Approx $8.13 million). The government agency has accused the crypto platform of assisting instant Loan APP Companies in the laundering of fraudulent money. It added that the funds were being purchased and transferred via virtual crypto assets.

This big news came after Indian lawmaker, Pankaj Chaudhary mentioned that Enforcement Directorate is looking into two cases related to the Wazirx. It allegedly violated the Indian Foreign Exchange Management Act (FEMA).

As per the Times of India, Indiana Lawmaker said that crypto transactions between WazirX and the loan app were not recorded on the blockchains. This raised an alarm among the Indian agencies. However, show cause notice was issued under the provisions of the FEMA against the crypto platform.

It added that WazirX allowed outward remittance of digital assets worth over Rs 2.790 crore (approx $351 million) to some unknown wallets.

Crypto exchange allowed third party transfers

However, it is being reported that in another case, the accused crypto exchange allowed foreign participants to convert one crypto to another. WazirX also allowed transfers from third party exchanges like FTX and Binance.

Enforcement Directorate highlighted that the accused loan company used the digital assets to take funds out of the nation. It added that the majority of the money is transferred to Hong Kong by using cryptocurrencies.

The government agency found the pieces of evidence regarding the money transfer and froze the Rs 100 crore worth of digital assets. It added that ED searched Sameer Mhatre’s house in Mumbai while Nischal Shetty, another director of WazirX is said to be in UAE.

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