India Investigating Alleged $125M Crypto Money Laundering Cases

India’s Financial Crimes Enforcement Agency is investigating more than 10 cryptocurrency exchanges in the country for allegedly laundering more than 10 billion rupees ($125 million), The Economic Times reported, citing unnamed sources. .

The report comes days after the Directorate of Law Enforcement (ED) froze $8 million in assets belonging to local crypto exchange WazirX, one of the largest in the country by volume, for “help instant loan app companies charged.”

The Economic Times quoted an official as saying similar transactions had occurred on other exchanges. WazirX has actively assisted around 16 fintech companies under investigation for alleged money laundering using cryptocurrencies, he reported.

Several calls to the management of Forkast went unanswered.

In response to a request for comment from ForkastWazirX reiterated a statement he had posted on August 9 stating that WazirX was a platform “cooperated by” Zanmai Labs and Binance.

“Zanmai Labs has a policy of no tolerance for any illegal activity using WazirX,” he said. “Users agree in the User Agreement to use WazirX in accordance with applicable law. Users are only registered with WazirX after completing the KYC process, including submitting proof of address and ‘identify.

KYC refers to know-your-customer guidelines requiring financial firms to verify the identity of their customers.

Due to nervousness about the future of WazirX, some of its users moved their assets to Binance to protect their investments, they said. Forkast.

According to The Economic Times, management was closely monitoring a row between WazirX CEO Nischal Shetty and Binance CEO Changpeng Zhao on social media over ownership of the Indian exchange. The public exchanges between the two men began after the announcement of the freezing of WazirX’s assets.

Zhao, in a series of tweets, said that on November 21, 2019, Binance published a blog post saying that it had acquired WazirX. But the transaction was never finalized, he wrote, adding that Binance had never held shares of Zanmai Labs, the entity operating WazirX.

Shetty refuted this claim, saying in an interview that he has legal documents proving that Binance controls all crypto-to-crypto exchanges as well as crypto deposits and withdrawals on the platform. He added that WazirX, a Binance-owned product and brand, was acquired in 2019 and has a license from Binance to process rupee transactions.