By
Steve Muchoki
May 23rd, 2023
The crypto exchange also distanced its operations with any of the alleged accused fintech and instant loan app entities.
Indian crypto exchange WazirX has announced that the Enforcement Directorate has unfrozen their bank accounts. In a tweet, posted by WazirX on Monday, the crypto exchange stated that it had cooperated with investigators and had provided all the necessary details, information and documents of alleged accused companies that used their platform.
The exchange later revealed in a blog post that the Enforcement Directorate (ED) had opened a series of investigations into 16 fintech companies and Instant loan apps.
WazirX added that some of those fintech firms had happened to use its platform.
“The company further clarified that it has no association with any of the alleged accused Fintech and Instant loan app entities which appear to be the subject of ED investigation, and is carrying out the KYC/AML checks despite having no legal obligation to do so. WazirX is like any other intermediary whose platform may have been misused,” the statement read.
After more than a month, the cryptocurrency platform’s bank accounts were unfrozen by India’s Enforcement Directorate, the nation’s financial crime-fighting organization, in a case involving a possible breach of foreign exchange laws.
The Indian ED claimed that as part of its investigations, it had searched one of the directors of M/s Zanmai Lab Pvt Ltd, which runs WazirX, and had ordered the freezing of their bank accounts to the tune of Rs. 64.67 cores ($8,132,258).
“After an in-depth internal investigation, WazirX noticed that most of the users whose information was sought by ED were already identified as suspicious by WazirX internally and were blocked in 2020-2021,” the company said in the blog post.
The company added that its bank accounts have been unfrozen by the ED as a result of its proactive cooperation and the ongoing anti-money laundering (AML) checks that resulted in the banning of suspicious accounts.
“WazirX is now in a position to continue its banking operations as usual,” it added.
The crypto exchange also distanced its operations from any of the alleged accused fintech and instant loan app entities. It also stated that it was carrying out know-your-customer/anti-money laundering checks despite having no legal obligation to do SO.
“WazirX is like any other intermediary whose platform may have been misused,” it stated.
