India’s Enforcement Directorate (ED) has opened the bank accounts of cryptocurrency exchange Wazirx, the company said. The accounts were frozen as part of a federal agency investigation into 16 fintech companies and instant loan apps.
Wazirx says its bank accounts are now closed
Indian cryptocurrency exchange Wazirx said on Monday that the Enforcement Directorate (ED), the Indian government’s law enforcement and economic intelligence agency, has closed its bank accounts.
The company said that the ED is investigating 16 fintech companies and instant loan apps. Emphasizing that Wazirx “has no affiliation with any of the alleged accused fintech and instant loan app entities that appear to be the subject of an ED investigation,” the crypto exchange acknowledged that some of these companies are “on the Wazirx platform.” meant to be used.”
The Indian crypto exchange stressed that it is “cooperating with investigators by providing them with all necessary details, information and documents” of the alleged accused companies that used its platform.
“Due to the proactive cooperation extended by Wazirx and proactive Anti-Money Laundering (AML) checks that led to the blocking of suspicious accounts, the ED has opened Wazirx’s bank accounts,” the crypto exchange detailed, detailed:
Wazirx is now in a position to continue its banking operations as usual.
The ED announced that it had attached Wazirx’s bank assets in early August. The agency clarified that the action was part of a money laundering probe into non-bank financial companies (NBFCs) and their fintech partners for “predatory lending practices” in violation of Reserve Bank of India (RBI) guidelines.
Wazirx further clarified on Monday that a thorough internal investigation revealed:
Most of the users whose information was sought by the ED were already identified as suspicious internally by Wazirx and were blocked in 2020-2021.
Following Wazirx, the ED froze cryptocurrencies and bank assets worth $46 million, a crypto platform backed by Peter Thiel. In August, the agency discovered crypto exchange Coinswitch Kuber. However, the CEO of the exchange said that it was not related to the money laundering investigation.
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