The Enforcement Directorate has unfrozen the bank account of cryptocurrency exchange WazirX, which has been under its scanner since last month, the company said in a statement on Monday, September 12. The company said.
“Due to the active cooperation provided by WazirX and active anti-money laundering (AML) checks that resulted in the ban of suspicious accounts, the ED has unfrozen WazirX bank accounts. WazirX is now in a position to continue its banking operations as normal,” the statement read on Monday.
The ED said last month it had conducted searches on one of the directors of M/s Zanmai Lab Pvt Ltd, the company that operates WazirX. After conducting the raids, the Central Agency froze the assets of the company to the value of Rs 64.67 crore.
The Department of Enforcement (ED) is investigating 16 fintech companies and instant loan applications. The company said some of them used the WazirX platform. “WazirX cooperates with investigators by providing them with all necessary details, information and documents for the alleged accused companies, who have used the WazirX platform.”
The company also made it clear that it has no affiliation with any of the accused fintech entities and instant loan applications that appear to be the subject of an ED investigation and are conducting KYC/AML checks despite there being no legal obligation to do so. She said WazirX, like any other broker, may have abused its platform.
“After an in-depth internal investigation, WazirX has noted that most users whose information ED requested have already been identified as suspicious by WazirX internally and have already been banned in 2020-2021,” she said in the statement.
“WazirX has a zero-tolerance policy towards any illegal activities using its platform and requires users to use it for lawful and honest purposes only. On WazirX, users undertake to act in accordance with all applicable laws,” the company said.
The agency launched raids against the director of Zanmai Lab on August 3 in Hyderabad, claiming he was “uncooperative”. Its investigation against the cryptocurrency exchange is linked to its ongoing investigation against a number of Chinese loan applications (mobile applications) operating in India. The agency had indicted WazirX last year for violating the Foreign Exchange Management Act (FEMA). On August 5, WazirX’s assets were frozen.
“It turns out that Sameer Mahatri, Director of WazirX, has full remote access to the WazirX database, but although he does not provide details of transactions related to crypto assets, which were purchased from the proceeds of fraud in the instant loan application.” “Know Your Customer Standards” Permissive, loose regulatory control over transactions between WazirX and Binance, no logging of transactions on blockchain to save costs and no KYC registration of corresponding wallets have ensured that WazirX is unable to give any account of the lost crypto assets,” the ED claimed in a statement. .