The Indian crypto exchange WazirX was under investigation by local authorities for cash laundering allegations which induced a freeze on over $8.1 million in bank account funds.
The Enforcement Directorate of India (ED) unfroze the bank accounts of the Indian crypto exchange WazirX, according to a press release from the exchange released on Monday.
WazirX says it has been cooperating with local authorities throughout their Anti-Money Laundering (AML) investigation by offering all the needed paperwork and details requested. The investigation focused 16 fintech firms and instant loan apps, a few of which solicited providers from the exchange.
The exchange, however, said it has a no-tolerance stance towards any illegal activities on the platform. Moreover, it mentioned that many of the focused customers within the ED investigation had already been flagged as suspicious by WazirX and blocked in 2020-2021.
Exchange informed that the case remains to be under investigation, but funds have been unfrozen resulting from no suspicious exercise discovered, with “no additional remark as of now.”
Funds in WazirX bank accounts had been frozen since Aug. 5, when the ED initially announced the investigation. The locked funds amounted to over $8.1 million in total.
The ED’s accusations in opposition to Exchange claimed it had processed $130 million in transfers of funds to wallets under investigation for unlawful actions. In light of the accusations, Binance, which once tried to acquire the company in 2019, distanced itself from the exchange by way of a public statement from CZ on Twitter.
Previous to the latest exercise, the exchange was under ED investigation in 2021 for money laundering charges associated to illegal online gambling proceeds tied to Chinese entities.
This time around, the crackdown on crypto exchanges in the nation didn’t cease with Wazir X. On Aug. 12, the ED froze a complete of $46.4 million in Yellow Tune’s bank balances and balances from crypto exchange Flipvolt. The allegations have been additionally money laundering associated, and the company was accused of being a shell for Chinese entities.
Authorities mentioned the funds would stay unavailable until the exchange can account for the legal proceeds that it transferred out of the country.
These investigations started to pile up after the Indian government announced crushing new crypto tax rules, which got here into effect earlier this year.