Indian Director of Enforcement seizes Wazirx’s assets worth around $8M. In a recent post, ED said that they had taken such action as a part of their money fraud investigation against new fintech companies and their various partners for not following the RBI-issued guidelines.
Recently, ED announced that they had found several large companies were diverting their funds into buying cryptocurrencies and then laundering them to different companies making their assets untraceable at that time for the government.
Actions of ED on Exchange
ED told that Zanmai Labs had made several deals with CrowdFire Incorporations and several other brands to obscure the leadership of WazirX. ED also alleged that Wazirx gave contradictory answers, saying they would not be able to provide cryptocurrency payments from now on.
Because of such claims, ED started an operation where it was discovered that Wazirx’s director had complete control of the database. Still, despite having access to the essential details of the transactions about the assets brought from proceeds of illegal instant Loan Application scam, they hid it.
ED concluded by stating that the exchange was promoting obscurity as well as having lax AML norms which have helped around 16 fintech brands in laundering their fraud money by making use of the crypto route. So, ED ceased assets of around 8 million dollars of the exchange. This incident shocked many WazirX users around the world.
More about the exchange
What is WazirX? It is a viral cryptocurrency exchange in India that is currently accessed by millions of people. The exchange was supposed to be brought by Binance 3 years ago. However, Binance’s CEO said that the company acquisition was never finished.
Binance’s CEO, CZ, also stated that the allegation which has recently been made on the working of WazirX as well as how Zanmai labs have been regulating it is a deep concern to them. They are ready to work with law agencies worldwide to take strict actions.
After this statement, the crypto community of India was surprised as they were supposing that Wazirx was a part of Binance and they have been regulating it for a long time.
What are your thoughts as the Indian Director Of Enforcement seizes Wazirx’s assets? How much do you think the matter will impact Binance? Let us know in the comments below. And, if you found our content informative, do share it with your friends.