Indian crypto exchange WazirX suspected of money laundering

Indian cryptocurrency exchange WazirX has become a defendant in an investigation by the Indian Enforcement Administration (ED)... The site is checked for violations of the LawIndia Foreign Exchange Report (FEMA). According to the Times of India, the agency found suspicious transactions while checking for money laundering of illegal online betting apps owned by Chinese citizens.

ED has issued Show Cause Notice to WazirX Crypto-currency Exchange for contravention of FEMA, 1999 for transactions involving crypto-currencies worth Rs. 2790.74 Crore.

— ED (@dir_ed) June 11, 2021

The suspects tried to launder the proceeds fromcriminal activities worth $ 7.8 million, converting rupee deposits into stablecoin Tether (USDT). They then transferred the stablecoins to Binance wallets, says India's Enforcement Administration.

“WazirX users through a pool account received$ 120.4 million worth of cryptocurrency from Binance accounts and transferred $ 191.6 million worth of digital coins to Binance accounts. None of these transactions are available on the blockchain for audit or investigation, ”the report says.

WazirX Director Nishal Shetty commentedinvestigation against the crypto exchange on Twitter. He wrote that the site complies with the requirements for customer identification (KYC) and anti-money laundering (AML). WazirX always provides information to law enforcement, Shetty added.

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We go beyond our legal obligations by followingKnow Your Customer (KYC) and Anti Money Laundering (AML) processes and have always provided information to law enforcement authorities whenever required.

— Nischal (WazirX) ⚡️ (@NischalShetty) June 11, 2021

In 2019, the Indian site WazirX acquiredthe largest crypto exchange in the world Binance. In May 2021, it became known that the DOJ and the IRS had launched an investigation into Binance. The crypto exchange is being checked for violations in the field of anti-money laundering and tax legislation. So far, no charges have been brought against the site.

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