India's largest crypto exchange, WazirX, has received a notice from the Enforcement Authority (ED) aboutsuspicions of facilitating money laundering and violation of currency legislation.
WazirX caught the attention of the agency as part of an investigation into money laundering by Chinese online betting apps.
In the notice, the ED claims that Chinese users converted 570 million rupees (~$8.8 million) into crypto assets on the WazirX platform and then transferred the funds to Binance.
The agency believes that in total, Binancereceived 8.8 billion rupees (~ $ 120 million) in cryptocurrency and transferred WazirX 14 billion rupees (~ $ 191 million). However, these transactions are not documented, which violates FEMA guidelines.
WazirX vehemently denies the allegations, saying it has not received any notification fromED. WazirX was bought by the Binance exchange in 2019.
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