Tuesday, August 16, 2022

Indian ED Attaches Assets of Binance Owned Exchange WazirX

The Takeaway:

A probe into possible violations of foreign currency regulations has resulted in freezing WazirX’s assets, which Binance bought in 2019. The ED declared assets worth $8.16 million had been attached.

WazirX, which recently had its assets blocked by India’s financial criminal offense agency as a result of an inquiry into potential violations of foreign exchange legislation, is owned by Binance, one of the biggest digital currency exchanges in the world.

The Indian government is investigating many fintech firms in relation to alleged misbehavior on instant loan applications that offer short-term loans.

The ED asserted in a press release that WazirX actively helped around 16 questionable fintech companies launder “the proceeds of criminality utilizing the crypto method.”

The authority consequently froze $8.1 million in WazirX money. The ED has charged the platform with allegedly trafficking 350 million dollars received unlawfully from fast loan companies.

According to Reuters, WazirX has not yet issued a statement opposing the asset confiscation by the Federal Enforcement Directorate.

The searches were directed at a director of Zanmai Lab, the business that owns WazirX. Changpeng ‘CZ’ Zhao, the CEO of Binance, denied reports that his business owns WazirX on Twitter after publishing the story.

ED learned through a fund trail investigation that fintech companies moved significant sums of money to purchase cryptocurrency assets and then be laundered abroad.

The majority of the cash was redirected to the WazirX exchange, and purchases of cryptocurrency were made using unidentified overseas wallets, according to the announcement.


Is Binance not Involved With WazireX?

Binance’s choice to entirely distance itself from the circumstance reveals its attempt to come across as innocent. As CZ informs consumers, Binance solely provides wallet services to WazirX as a technological solution. To lower network fees, off-chain activities are also included.

This can be used to demonstrate that WazirX controls all other exchange processes, including user registration, KYC, trading, and starting withdrawals.

A complaint similar to WazirX’s that encompassed 2.35 billion USD from 2017 to 2021 was aimed against Binance about two months ago. It claimed “indirect” money laundering, though it was believed to have occurred.

Recent allegations surrounding the administration of the network by Zanmai Labs as well as the operations of WazirX are very troubling, said the CEO of Binance.

“Binance collaborates with law enforcement agencies all around the world. We would be happy to work with ED in any way possible.”

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Vivekanandan Tiwari
Vivekanandan Tiwari
Vivekanandan is an IT graduate, He loves to write about blockchain-related techs. He is enthusiastic about Financial markets and is always eager to learn.

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