WazirX, a cryptocurrency exchange linked to Binance, sees its assets frozen by India due to FX allegations
The WazirX assets, which were connected to Binance, the largest digital currency exchange in the world, according to India’s financial crime-fighting agency, have been frozen.
As part of its investigation into potential violations of foreign exchange regulations, India’s financial crime-fighting agency announced on Friday that it had frozen the assets of WazirX, a company connected to Binance, the largest digital currency exchange in the world.
Assets worth 646.70 million rupees ((dollar)8.16 million) were reportedly frozen by the federal Enforcement Directorate (ED).
A representative for WazirX, one of the largest virtual currency exchanges in India, said, “We have been fully cooperating with the Enforcement Directorate for several days and have responded to all their queries fully and transparently.”
“We reject the claims made in the ED press release.
We are assessing our next course of action.
The organization claimed that its action was connected to an investigation into the crypto exchange’s alleged assistance to instant loan app companies in the conversion of criminal proceeds into cryptocurrencies on its platform.
One of Zanmai Lab’s directors, who oversees WazirX, was the target of the searches.
According to the ED, it is investigating several shadow banks and their fintech companies for money laundering because they have violated central bank regulations and engaged in predatory lending practices.
According to a press release, “ED found that large sums of money were diverted by the fintech companies to buy crypto assets and then launder them abroad…the maximum amount of money was diverted to WazirX exchange and the crypto assets so purchases have been diverted to unknown foreign wallets.”
The investigating agency also noted that Chinese funds supported many of these fintech businesses engaging in illegal lending practices.
WazirX was the subject of an investigation by the ED last year for alleged violations of foreign exchange laws.
On Friday, Binance CEO Changpeng Zhao tweeted that the company did not own any Zanmai Labs stock.
Quick thread on WazirX and Binance, and some inaccurate reporting.
The company running WazirX and founded by the original founders, Zanmai Labs, is not owned by Binance in any equity capacity.
WazirX is run by Zanmai Labs, a company that was founded by the original founders, and Binance does not hold any equity in it.
“On November 21, 2019, Binance announced in a blog post that it had ‘acquired’ WazirX. This transaction was never finalized, however.
At any time, Binance has never owned any shares of Zanmai Labs, Zhao tweeted.
He said that as a technical solution, Binance only offers wallet services to WazirX.
The ED was searching in 2021…
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