WazirX shares update on ED probe, says bank accounts not frozen

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Sharing an update on the investigation from the Enforcement Directorate (ED), Indian crypto exchange WazirX said on Monday that the company is cooperating with investigators by providing them with all necessary details, information and documents. companies allegedly accused, who used the WazirX platform.

The company further clarified that it is not associated with any of the alleged fintech and instant loan app entities charged that appear to be under investigation by ED and that it is performing the KYC checks. /AML although it has no legal obligation to do so. “WazirX is like any other intermediary whose platform may have been misused,” he said in a statement. ED conducted a survey of 16 fintech companies and instant loan apps.

After a thorough internal investigation, WazirX said it noticed that most of the users whose information was sought by ED were already identified as suspects by WazirX internally and were already blocked in 2020-2021.

“Due to WazirX’s active cooperation and active Anti-Money Laundering (AML) checks which led to the blocking of suspicious accounts, ED has unblocked WazirX’s bank accounts. WazirX is now able to continue its banking operations as usual,” he added.

WazirX is an India-based crypto exchange platform that allows users to buy, sell and trade various cryptocurrencies such as Bitcoin, Ether, Litecoin, etc. WazirX is the largest crypto exchange in India and has over 12 million users.

Last month ED froze Bank deposits worth 64.67 crore from WazirX as part of an ongoing money laundering investigation against certain fraudulent smartphone lending apps ‘backed by’ Chinese funds.

The agency said it had discovered that a number of fintech companies involved in “predatory lending” through mobile apps in the country “diverted maximum funds to the WazirX exchange and the crypto-assets thus purchased diverted to unknown foreign wallets”. The ED launched its investigation last year into WazirX for alleged violations of exchange regulations.

The ED said it was conducting money laundering investigations against several shadow banks and their fintech companies for violating central bank standards and engaging in predatory lending practices.

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