The cryptocurrency exchange WazirX’s bank accounts have been unfrozen by the Directorate of Enforcement, enabling WazirX to access its bank accounts and restart its banking operations, the business announced in a blog post on Monday.
In-depth details about ED Lifts the Ban on WazirX Allowing it to Access its Bank Accounts:
The federal agency looking into money laundering claimed in August that it had searched one of the directors of Zanmai Lab Pvt Ltd, which runs WazirX, and had given the company permission to freeze bank balances totaling Rs 64.67 crore.
The ED was looking into 16 fintech companies and fast loan apps when it took this step. According to a report from ET on August 11, an agency is looking into at least ten cryptocurrency exchanges for allegedly laundering more than Rs 1,000 crore from companies charged in the fast loan apps case. This money was identified as the proceeds of crime. Most of them are connected to China.
According to the company’s blog post, “WazirX found that the majority of the individuals whose information was sought by ED were already identified by WazirX internally as questionable and were blocked in 2020-2021.”
“ED has unfrozen the bank accounts of WazirX as a result of the active cooperation provided by WazirX and active anti-money laundering (AML) checks that resulted in the banning of suspicious accounts. WazirX is now able to carry on with business as usual in the banking industry,” it added.
The ED said in its report from August that the exchange “actively” helped about 16 fintech companies under investigation for alleged money laundering to shift their illicit gains through the use of cryptocurrencies.
The business claimed in the blog post that WazirX was unrelated to any of the alleged fast loan apps or fintech companies. Despite having no legal mandate to perform the know-your-customer/AML checks, the corporation claimed to be doing so.
WazirX is comparable to any other middleman whose platform might have been abused, it claimed.