Get your cheese out of the shops
The Enforcement Directorate conducted searches on one of the directors of Zanmai Labs Private Limited which owns the popular cryptocurrency exchange WazirX, issues a freezing order to freeze their bank balances to the tune of ₹64.67 crore, news agency ANI reported. This development comes after the Directorate of Enforcement (ED) served crypto exchange WazirX a notice under the FEMA Act, Minister of State for Finance Pankaj Chaudhary told Rajya Sabha on Wednesday.
Notably, the agency's probe against the crypto exchange is reportedly linked to its ongoing investigation against a number of Chinese loan apps (mobile applications) working in India.ED searches the Director of WazirX Crypto-Currency Exchange & freezes its bank assets worth ₹64.67 Crores for assisting accused Instant Loan APP Companies in the laundering of fraud money via purchase & transfer of virtual crypto assets— ANI (@ANI) August 5, 2022
The ED is investigating two cases related to crypto-currency against WazirX under the provisions of Foreign Exchange Management Act, 1999 (FEMA), he said in a written reply to the Rajya Sabha, according to news agency PTI report.
In a written response, he said, “in one of the cases, investigation done so far has revealed that one Indian cryptocurrency exchange platform, Wazirx, operated by Zanmai Labs Private Limited in India was using the walled infrastructure of Cayman Island based exchange BINANCE. Further it has been found that all crypto transactions between these two exchanges were not even being recorded on the blockchains and were thus cloaked in mystery."
Responding to the Parliament's reply, WazirX had informed that it has not been served a notice for money laundering. According to the minister, a Show Cause Notice (SCN) has been issued under the provisions of FEMA against WazirX for allowing outward remittance of crypto assets worth ₹2,790 crore to unknown wallets, the PTI report said.
Meanwhile, noting another instance, the minister said it is noticed that Indian exchanges namely WazirX has allowed the foreign users’ request to convert one crypto into another on its own platform as well as by using transfer from third-party exchanges namely FTX, BINANCE, etc, the report said.
(With inputs from ANI, PTI)
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