The ED has launched investigations into several crypto firms over allegations of money laundering in foreign crypto wallets. Last month, the agency raided five locations allegedly linked to another crypto firm, Coinswitch Kuber, which in a statement said it was cooperating with the investigation.
New Delhi: India's Enforcement Directorate (ED) has lifted restrictions on WazirX from accessing its bank accounts, allowing the crypto exchange to resume its banking operations, WazirX said in an online post on Monday. .
Due to enhanced cooperation by Vazir X and blocking of suspicious accounts due to active money laundering checks, the ED has closed the bank accounts. WazirX is presently in a situation to go on with its financial tasks not usual."
According to a Mint report, WazirX's bank accounts worth ₹64.67 crore last after the ED launched a money laundering probe into the crypto exchange's alleged role in helping 16 Indian fintech firms and loan apps transfer money to undisclosed foreign wallets. Months were frozen.
According to a Mint report, WazirX's bank accounts worth ₹64.67 crore last after the ED launched a money laundering probe into the crypto exchange's alleged role in helping 16 Indian fintech firms and loan apps transfer money to undisclosed foreign wallets. Months were frozen.
The crypto exchange has said that it has cooperated with the ED and provided them with all necessary details, information and documents relating to the 16 firms that were using its platform and were being investigated by the ED. It also claimed that most of the users whose information was sought by the ED were deemed suspicious by the platform and were blocked in the last two years.
“WazirX is like whatever other go-between whose stage can be misused,” Post said.
WazirX got 1,023 requests from law enforcement agencies between October 2021 and March 2022, up from 377 requests got in the previous six months ago. According to the WazirX semi-annual transparency report published in April, Indian law enforcement agencies accounted for 952 of these requests. The report revealed that 95% of crypto-related frauds occurred outside the blockchain ecosystem.
The ED has launched investigations into several crypto firms over allegations of money laundering in foreign crypto wallets. Last month, the agency raided five locations allegedly linked to another crypto firm, Coinswitch Kuber, which in a statement said it was cooperating with the investigation.
