WazirX, the Indian Crypto Currency Exchange has landed itself in trouble after it came under the radar of the Enforcement Directorate (ED). The ED has started searching the premises of WazirX’s Director.
Enforcement Directorate (ED) Freezes WazirX $8.13 Million Bank Assets
Enforcement Directorate (ED) has frozen the bank accounts of WazirX $8.13 million (Rs 64.67 crores) bank assets after conducting the searches. ED has indicted the crypto exchange of money laundering. The Government Agency has accused the exchange of assisting instant Loan APP Companies in the laundering of fraudulent money. The crypto exchange has siphoned off the funds through virtual crypto assets.
The Enforcement Directorate started investigation into two cases related to the Wazirx after Indian lawmaker, Pankaj Chaudhary accused the exchange of violating the Indian Foreign Exchange Management Act (FEMA).
The Times Of India quoting the lawmaker reported that the crypto exchange did not record the transactions it effected with the loan app on the block chain. This alerted the Indian Agencies which subsequently issued show cause notice under the provisions of the FEMA against the crypto platform.
The ED has revealed that WazirX had allowed outward remittance of digital assets worth over Rs 2.790 crore (approx $351 million) to some unknown wallets.
WazirX Allowed Third Party Transfers
In another instance the crypto exchange permitted foreign participants to convert one crypto to another. WazirX also conducted transfers from third party exchanges like FTX and Binance.
The ED investigation revealed that the crypto exchange had transferred the money to Hong Kong by using cryptocurrencies. It accused the loan company of transferring funds out of the country by using crypto currencies.
The ED has conducted raids on Sameer Mhatre’s house in Mumbai while Nischal Shetty, another director of WazirX is said to be in UAE.